Keystone's Midday Market Action 5/9/13

The dollar/yen explodes over the 100 level (first time since 2009) as the BOJ's relentless easing weakens the yen and the U.S. dollar jumps higher.  The dollar/yen is 100.62.  The dollar is 82.80.  The previous mid-day chart shows how the upside dollar/yen orgy today sent the SPX higher. The central bankers are in these markets like a bull in a china shop. VIX is 13.32. JJC 41.22. GTX 4749. TRIN is 1.01, dead neutral, not knowing which side to favor today. So, status quo sideways action despite the SPX now down seven to 1626. The bears need VIX over 13.74 and SPX under 1623 if they expect to growl strongly. The 8 MA remains above the 34 MA on the SPX 30-minute chart keeping the bulls in control, however, the 8 MA is converging down at the 34 MA, at the closest position since the bullish cross occurred six days ago. The bulls may be able to squeeze markets sideways into the close to prevent the 8/34 cross today but it will set up for an interesting opening bell tomorrow.

Note Added 3:32 PM:  Markets are staggering sideways. Dollar/yen 100.60. 10-year yield 1.81%.  VIX 13.12. JJC 41.34.  GTX 4749. TRIN 0.96. Status quo. SPX is 1627.85 recovering off the LOD at 1623.30.

Note Added 4:02 PM:  SPX staggers sideways through 1623-1629 for the last hour of trading. Markets finished on a confusing note. TRIN is flat at one unwilling to give either side the nod. The 8 MA is above the 34 MA on the 30-minute chart but they are very close to a bearish 8/34 cross. The market bulls have to create a strong upside move at the opening bell tomorrow to stop the bearish cross. Traders need time overnight to sort out today's action with the dollar/yen, dollar, and to investigate the Fed 'taper' rumor that many do not believe is true. Every day is theatre and drama stealing time away from tending to the perennials. Time to let the smoke clear and ponder the action over a slice of apple pie.  PCLN earnings disappoint so it is taking the pipe AH's. GPS earnings are happy creating, appropriately, a 'gap'-up.