SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 11/5/12

SPX support, resistance, moving averages and other levels of import are provided below. Last week was dramatic with the SPX leaping higher on Thursday, then collapsing on Friday. Note how price came up for the Friday intraday high at a confluence of the 20 and 50-day MA's, all converging at 1434-1435, which resulted in price failure.  The move serves a as a back kiss for both the 20 and 50-day MA's, and, since price failed after the kiss, a bearish signal results moving forward. Further, the 20-day MA is about to stab down thru the 50 MA which is a bearish signal.

Keystone's 200 EMA signal on the 60-minute chart was tested on Friday resulting in price collapse.  This is a key indicator for bullishness versus bearishness for the days and couple weeks or so moving forward so the bears remain in control. The 1433 level is very strong resistance, thus, a strong ceiling is now in place for price at 1431-1435.  Price will need a jack hammer to punch up thru this gauntlet moving forward.

The SPX closed near the lows and strong support at 1413.  Even though price pierced the 1413 support on Friday the bears did not have the energy to close underneath this strong support and the bulls ran out the clock to end the session. The 20-week MA at 1407 is very important support over the last two weeks so losing that level piles on more market bearishness. The 1403-1406 uber strong support held over the last couple weeks with price testing 1403 intraday and bouncing. This is the Draghi put level where the ECB's OMT bond-buying announcement occurred placing a floor in the markets. A loss of 1403 would indicate that traders have lost all confidence in a Spain bailout request occurring anytime soon.

For Monday, starting at 1414, the bulls would need a 20-handle move, to punch thru the 1431-1435 resistance gauntlet to get their mojo back, a very formidable task. Instead, the bulls will simply try to prevent any additional downside. The bears have the easy road, only needing a one point drop to trigger a downside acceleration which would test the important 20-week MA at 1407 in short order.  Watch the Sunday overnight futures to see if the S&P's are down a point or more, if so, the bears are going to come to play for Monday's open. If the futures are positive, the bulls will be putting up a strong fight and the downward market slide may be more bluster than strength. A move thru 1414-1433 is sideways action. If 1403 fails, bad things will happen to the markets.

·         1476

·         1475 (9/14/12 Intraday HOD for 2012: 1474.51)

·         1472

·         1468

·         1466 (9/14/12 Closing High for 2012: 1465.77)

·         1465

·         1461

·         1460

·         1457

·         1453

·         1451

·         1447

·         1446

·         1444

·         1441

·         1440 (5/19/08 Intraday HOD for 2008: 1440.24)

·         1438

·         1435

·         1434.74 (20-day MA)

·         1434.48 (50-day MA)

·         1434.27 Friday HOD

·         1433

·         1431.71 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1431

·         1429

·         1426 (5/19/08 Closing High for 2008: 1426.63)

·         1424

·         1422.51 (10-day MA)

·         1422

·         1419

·         1416

·         1414.20 Friday Close – Monday Starts Here

·         1413

·         1412.91 Friday LOD

·         1409

·         1407.17 (20-week MA)

·         1406 (5/29/08 HOD)

·         1404

·         1403

·         1399.82 (100-day MA)

·         1399

·         1397

·         1394

·         1391

·         1389.75 (10-month MA)

·         1389

·         1385

·         1384.89 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1378.93 (200-day MA)

·         1378

·         1375

·         1372.29 (12-month MA; a Keystone Cyclical Signal)

·         1371(5/2/11 Intraday HOD for 2011: 1370.58)

·         1370

·         1369

·         1366

·         1364 (4/29/11 Closing High for 2011: 1363.61)

·         1363

·         1362

·         1358.80 (50-week MA)

·         1358

·         1357

·         1355

Keystone's Trading Week in Review and Path Ahead 11/3/12

On 10/26/12, Friday, Asian markets sell off on the Amazon and Apple misses.  The euro is at 1.2927.  Spain unemployment is now over 25%. The Spain 10-year yield is at 5.67% with the worst week in eight weeks.  Spain appears in no rush to request a bailout so the ECB will not go in to buy bonds. Germany 10-year yield is down to 1.55% as traders seek perceived safety. S&P rating agency downgrades BNP Paribas and other French banks on concerns over the economic risk in France. JPM’s CEO Dimon says that recession is likely in the U.S. in 2013 and the fiscal cliff dilemma will exacerbate the trouble. Dimon says the fiscal cliff continues to hurt companies because the indecision and worry is causing companies to not hire anyone or expand until they see resolution.  The Libor probe widens to 16 total banks with subpoenas on tap for nine new banks including BAC, Mitsubishi, Credit Suisse, Lloyds, Ragobank, Royal Bank of Canada, Societe Generale, Norinchukin Bank and West LB.  Gold is dropping for three weeks now at 1700-ish. European markets are a sea of red. The S&P futures are down over 10 and the Dow Industrials are down over 100 as traders wake on the East Coast. MRK earnings are better than expected and the GDP comes in at 2.0%. The 2 handle excites bullish traders since 1.8% or lower was expected. The real number, that will probably be reported weeks from now, will likely be lower, but for today, the 2 handle reverses the sad mood from the AMZN and AAPL earnings.  The GDP benefited from the government pumping money into the defense sector over the last few weeks. The futures perform a miraculous comeback from down 12 S&P’s all the way back to the flat line as the opening bell rings. Markets trail lower all morning long and the SPX tests the critically important 1403 support at lunchtime, and bounces. The SPX launches from 1403 up to 1417 then drops into the closing bell finishing at 1412.  The major indexes print another down week the SPX dropping 1.5% this week, the Dow Industrials down 1.8%, Nasdaq (tech) down 0.6% and the RUT (small caps) down 0.9%. Note that the leadership of small caps and tech to the downside over the last three weeks has diminished providing the bulls some hope. Keystone’s SPX 150-Day MA Slope Indicator signals a Cyclical Bear Market ahead.

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On 10/28/12, Sunday, Draghi supports Schaeuble’s proposal for a European commissioner to oversee the bailouts for troubled nations but EU treaties would require revision so the path ahead is a long one. Tension mounts as Hurricane Sandy approaches the East Coast of the U.S. The storm is a 100-year event, the largest storm ever seen in the Atlantic Ocean. The NYSE announces that the floor trading will be closed on Monday but electronic trading will continue.

On 10/29/12, Monday, Rajoy (Spain) and Monti (Italy) meet and disagree over the timing of the Spain bailout request.  It is in Italy’s interest to see Spain request a bailout immediately since the ECB bond-buying will help Italy’s debt situation.  Spain, however, continues to see no rush to request the bailout and Rajoy says “Spain will request a bailout when it is in their interest.” The worries over the Hurricane Sandy ‘Frankenstorm’ become more serious and cause the exchanges to announce closure of all trading for Monday and possibly Tuesday.  Many companies delay their earnings releases due to the hurricane.  The Consumer Confidence number scheduled for tomorrow is now pushed to Thursday.  Futures trading continues unaffected (albeit lower volumes) into the 9:15 AM EST close.  Hurricane Sandy reaches landfall Monday afternoon wreaking havoc with high winds, rain, flooding and some snow. The New York subway floods cause fires. Transformers and a substation explode resulting in power outages throughout New York. Folks take shelter for a long night ahead. Futures markets open as normally scheduled at 6 PM EST.  AAPL announces a shake-up at the top with key personnel leaving the company due to the Mapgate problems. In the evening, a rumor hits Twitter that the floor of the NYSE is flooded. The message is immediately re-tweeted by many causing anxiety since obviously the markets would remain closed for an extended period, but, the hoax was quickly rebuffed by eyes on the ground confirming that no such flooding is occurring; the NYSE did not experience any water damage but is operating on reserve power.

On 10/30/12, Tuesday, U.S. markets will be closed today.  .Futures markets will remain open thru the 9:15 AM EST closing time today and are printing negative numbers for the S&P’s, Dow Industrials and Nasdaq as the sun rises on the East Coast.  Markets must open tomorrow, even if only for a couple of hours, since funds need an EOM, and for some, an end-of-fiscal-year print, for accounting purposes.  The markets have not been closed for two consecutive days due to weather since 1888, over 100 years ago.  Hurricane damages are estimated to exceed 20 billion dollars.  Much of New York remains without power. Lower Manhattan is now blacked out. The euro moves up and away from the psychological 1.29 level, printing at 1.2947, and creating buoyancy in the European markets.  Spain GDP shows five consecutive quarters of contraction and this will only get worse in the months ahead as austerity measures bite.  The BOJ announces stimulus measures as the markets expected but surprisingly, the yen does not weaken, and the dollar/yen pair actually moves down rather than moving up. UBS (major Swiss bank) announces 10K layoffs that will occur over the next three years as the bank closes its fixed income division. The trend of major companies announcing mass layoffs is worrisome for global markets moving forward.  Earnings releases and economic data releases are in disarray this week due to the hurricane.  Traders anxiously await word that trading will resume tomorrow. At 12:45 PM EST, the NYSE says that floor trading will resume tomorrow with a normal trading day expected.

On 10/31/12, Wednesday, Halloween. EOM. Traders return to the NYSE floor despite the subway not operating and minimal functionality with public transportation.  Traders and media are staying in local hotels to avoid the harrowing commute.  Unfortunately, much of Lower Manhattan is without power so the hotel stays are far from comfortable.  The NYSE back-up generators are working, however, and the front entry lights of the NYSE serve as a beacon in the New York darkness.  The markets open without a hitch. Large volume occurs at the open due to pent-up demand from the two-day lull and the need for mutual funds to close out fiscal books. About 25% of the mutual funds use 10/31/12 as their fiscal year end so it was important to achieve the end prints today. Keystone’s SPX 30-minute chart shows the 8 MA moving up thru the 34 MA indicating bullish markets for the hours and days ahead.  Volume is light all day long then a rush of higher volume occurs late day. There are cell phone and some internet conductivity issues throughout the day but overall, the markets operate smoothly. At 12:30 PM, Keystone’s SPX 30-minute chart shows the 8 MA moving down thru the 34 MA indicating bearish markets for the hours and days ahead.  Volatility jumped higher and the markets finished flat after the SPX explored both the bottom of an ongoing sideways channel at 1406 and the top of the channel at 1419. The bulls and bears are fighting it out thru this 1403-1419 support/resistance zone. The SPX prints a down month for October after four consecutive up months. The IMF says they will issue another growth warning. Merkel says the Eurozone must regain credibility.

On 11/1/12, Thursday, China PMI is a touch above the 50 level indicating that the economy may be turning around. The China HSBC PMI, considered being a bit more reliable remains under 50.  Copper and commodities jump higher.  ADP Jobs Report comes in higher than expected but ADP changed their calculation methodology so traders are scratching heads as to how this may correlate to the Jobs Report tomorrow. Futures remain flat with the S&P’s recovering five points from the negative side over the last few hours before the opening bell.  Markets jump higher at the open to the SPX 1419 resistance. Keystone’s SPX 30-minute chart shows the 8 MA moving up thru the 34 MA indicating bullish markets for the hours and days ahead.  Auto sales across the board come in slightly weaker than expected. At 10 AM, the Consumer Confidence number is the highest since 2008 and the ISM also is better than expected so the broad indexes launch and never look back.  The bulls are running and long traders proclaim that the bottom is in and the markets will move higher into the election. The SPX ends up 15 points, 1.1%, to 1428. The Dow Industrials are up 136 points, 1.0%, to 13233. The Nasdaq is up 43 points, 1.4%, to 3020.  The RUT is up 9 points, 1.1%, to 828.  Gold is at 1717 and the 10-year yield is at 1.72%. November starts with the largest market gain since the Bernanke QE3 Infinity announcement rally on 9/13/12. Tech led the way higher with the semiconductor rally but the small caps were not leading higher. The oddity in the bullish action is the euro dropping since the euro should be moving higher with equities. The euro remains above 1.30. Keystone’s SPX 150-Day MA Slope Indicator reverses the Cyclical Bear Market signal from last week but this is a game of pennies and the signal should turn bearish in the days ahead again. Keystone’s UPS 20 and 50-Week MA Cross Cyclical Signal Indicator is on the verge of turning bearish.

On 11/2/12, Friday, the euro collapses under 1.30 overnight.  The key 128.80 level gives way in the early morning hours in the States. The BOJ intervention is weakening the yen so the dollar/yen pair is moving higher, which moves the dollar basket higher, $USD, and in turn weakens the euro.  The higher dollar slams commodities and especially copper.  The Monthly Jobs Report, the last report before the presidential election, is released at 8:30 AM EST, with 171K jobs (above the 125K consensus) and 7.9% unemployment rate (consensus was 7.9%).  Hourly wages are down and hours worked are flat. If companies are not paying higher wages to current workers, and the hourly hours are not rising, that tells you there is no need to hire any new employees, the existing employees are handling the workload fine.  The 171K is positive news, but a recovery needs over 300K jobs per month. In addition, 150K jobs are needed to simply keep pace with potential new employees entering the workforce such as college graduates. The numbers are very worrisome.  Futures bounce on the news but are not overly exuberant; the S&P’s are up about six, and also tech is not leading the broad markets higher.  The jobs report hints that QE is perhaps less needed, even though a 171K number is nothing to write home about, along with the higher dollar, pushes gold under 1700.  The euro drops to 1.2852.  At the opening bell, the semiconductors bounce and then fall on their sword. Volatility, VIX, drops to 16 (market bullish) but then bounces strongly (bearish). Commodities are dropping on the higher dollar and copper is getting crushed.  Dr. Copper, perhaps the main bellwether of the global markets, will need to treat his severe wounds this evening.  The SPX jumps to punch thru Keystone’s SPX 60-Minute Chart with 200 EMA Indicator at 1432, but only for a few minutes, and also tests the 50-day MA at 1434. The SPX immediately collapses. The iPad Mini is on sale but the lines are far shorter than other Apple product releases.  The Apple stores take on a surreal affect with employees performing traditional cheers for patrons, but, there are more employees than customers in the stores. AAPL is negative from the opening bell and tests the 200-day MA at 588, which fails. Apple drags down the Nasdaq. The euro drops to 1.2842 approaching the key 1.2830 level which is strong support and the 200-day MA.  The utilities sector is weak. At 2 PM EST, the SPX loses the strong support at 1424.  The euro falls thru the 200-day MA.  Apple collapses now down 15 bucks. Small caps are collapsing with the RUT now down over one percent.  The SPX drops to the strong 1419 support, and fails. Oil falls under 85. The VIX is over 17.  The Dow Industrials have now dropped 200 points off of today’s high print.  AAPL is down 20 bucks to 576.  The news outlets are running video and stories on the Hurricane Sandy disaster non-stop. The devastation is overwhelming. The gasoline lines stretch on for miles. Folks continue to search for the missing.  The help is slow in coming.  The situation is deteriorating with each passing hour.  Meanwhile, runners preparing for the New York marathon only yards away from devastation are in a festive mood, running practice runs since Mayor Bloomberg is resolute in holding the marathon. Even the marathon committee is not fully on board with this decision considering the human tragedy unfolding.  Outrage develops when three large boxcar size generators are shown in place for the marathon; these generators could supply electricity to a few hundred homes instead. Truckloads of bottled water sit at the marathon staging grounds and even cases of booze are stacked ready for the drunks to drink during the festivities. Bloomberg buckles under the pressure and at 5 PM EST announces that the marathon is cancelled.  New York, New Jersey, Connecticut and Pennsylvania, as well as other East Coast areas are a mess, perhaps all this confusion adding to the market weakness. The SPX loses 13 points, 0.9%, to 1414.  The Dow Industrials lose 139 points, 1.1%, to 13093.  The Nasdaq is down 38 points, 1.3%, to 2982.  The RUT is down 13 points, 1.6%, to 814. The broad indexes finish flat to negative on the week. The markets gave back all of Thursday’s gains. Gold is at 1678. Tech, and the small caps, lead the markets lower today, which is bearish. The copper collapse is very bearish.

On 11/3/12, Saturday, the hurricane tragedy continues with the death toll now over 100. The situation continues to deteriorate but Bloomberg and other leaders pat each other on the back at how great a job they are doing. This fuels further outrage. Damages may now exceed 50 billion dollars. The tragedy is heart-breaking.

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On 11/5/12, Monday, ISM Non-Manufacturing Index.

On 11/6/12, Tuesday, U.S. Presidential Election Obama v. Romney, the result will be known in the evening from 9 PM thru 12 PM EST but if the results are as close as anticipated it may be the wee hours of the morning before the victor is known.

On 11/7/12, Wednesday, the election aftermath. 10-Year Note Auction. Consumer Credit.

On 11/8/12, Thursday, the new China Premier Xi Jinping is officially selected and named the Head of Party, but, where is he?  The transition of China leadership begins with China holding the 18^th Party Congress. ECB Rate Decision and Press Conference; rate cut means euro down and stocks down, no cut means euro up and stocks up. International Trade and Jobless Claims.

On 11/9/12, Friday, Consumer Sentiment.

Europe continues to dictate global market direction with several moving parts;

·         ECB Rate Decision and Press Conference this Thursday, 11/8/12. Europe must lower the value of the euro to increase growth thru manufacturing and exports. If the ECB cuts, the euro will drop and bring down equities. If the ECB stands pat the euro will move sideways or up which will help support markets.

·         The Spain bailout request must occur before the ECB OMT bond-buying program can occur. Spain must formally request the bailout since it shows a willingness to give up some sovereignty and accept oversight and conditionality. Spain are proud folks that do not want that so they keep trying to hang on without requesting a bailout. Italy tries to convince Spain to request the bailout since the bond-buying would help Italy’ debt mess.  Rajoy continues resolute in not asking for a bailout, especially with Catalonia regional elections occurring on 11/25/12, and it appears Spain will not request a bailout until December or later. The euro weakens (equity markets weaken) with no bailout but will launch higher with a bailout request.

·         Troika is scheduled to make a decision on Greece’s debt mess on 11/12/12 but do not hold your breath. The schedule has changed from August to September to October and now to November. The euro will weaken as the Greece mess continues but the euro will jump higher if a solution occurs, which would send equity markets higher as well. Greece will likely stay in the euro until the Merkel election occurs in Germany in the Fall 2013.

·         Cyprus needs aid. Perhaps the European leaders are working on a package approach where a Spain, Greece and Cyprus aid package will be announce all at once.

·         Italy, Ireland and other Euro nation’s ongoing individual debt drama’s.

·         Fiscal Union and Banking Union. Merkel is pushing the fiscal union. The banking union is to start up January 2013 but will not be fully functional until January 2014. The schedules and dates continue to slip forward.

·         The Draghi put supporting the markets is the announcement of the OMT program on 9/6/12 at SPX 1403. If SPX 1403 fails, that shows traders have lost all confidence in the European central bankers’ scheme.

·         ECB Rate Decision and Press Conference Thursday, 12/6/12.

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On 11/12/12, Monday, Veteran’s Day Observed, stock market is open but bond market is closed.  Troika is working towards a Greece decision for today (the decision has been repeatedly delayed from August).

On 11/13/12, Tuesday, NFIB Small Biz Optimism Index. New moon.

On 11/14/12, Wednesday, PPI and Retail Sales. Business Inventories. FOMC Minutes. Bradley turn date.

On 11/15/12, Thursday, CPI. Empire State and Philly Fed Surveys.

On 11/16/12, Friday, OpEx. TIC data. Industrial Production.

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On 1/1/13, Tuesday, ESM is officially open but will not be fully operational.

On 1/2/13, Wednesday, if Congress does not act, the U.S. hits the ‘massive fiscal cliff’ (a phrase coined by Chairman Bernanke in early 2012) that will cut the GDP, increase unemployment and immediately launch the country into recession, but, on the positive side, the nation’s debt will decrease. On 9/13/12, Bernanke says the Fed does not have tools to handle the fiscal cliff.

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In February or March, new China Premier Xi Jinping is named Head of Government and takes over complete control.

Keystone's Midday Market Action 11/2/12

Now that some of the smoke has cleared, let's take a look at the metrics.  SOX 380 is key today, especially since semiconductors drove the markets higher yesterday.  Price came up to punch thru at the opening bell, then promptly fell on its sword, now printing 375.80, so the bears dodged a bullet, and the bulls missed an opportunity, so far today.  VIX 15.90 is also key.  The VIX came down but held the 16 psychological support and is now printing 17, which keeps the bears in the game.  GTX, commodities, are falling thru 4800 now, a far cry from 4920, also helping the bears maintain the reins. Copper is getting crushed.  The bears need RTH 44.44 to reestablish the market downside but the bulls are keeping it at 44.83 right now well above this danger level.  Thus, the markets are in standoff mode and may stay that way thru the presidential contest on Tuesday.

For the SPX, the bulls punched thru the strong 1429 R at the bell so it appeared to be all wine and roses today, but, alas, the SOX and VIX behavior immediately tells you that is not the case.  Price pierced the 200 EMA on the 60-minute chart at 1432.25 so the champagne corks popped, but minutes later the bulls were frantically trying to replace the corks into the bottles. Ditto the 50-day MA at 1434.70.  The HOD is 1434.27, a textbook back kiss resulting in price collapse.  Keep an eye on these important levels. Also, the SPX S/R at 1438, 1435, 1434.70, 1433, 1432.25, 1431, 1429, 1426.63, 1424, 1422 and 1419.

Tech is leading the broad markets lower so far, the opposite of yesterday's action.  AAPL is down five today testing the 200-day MA at 588.70.  The iPad Mini is on sale today. Several souls are waiting in line but the New York gasoline lines are far longer as the East Coast Hurricane Sandy tragedy continues to unfold. The New York Apple store action for the iPad Mini is a bit pathetic compared to all other past Apple product releases.  There are more employees than customers in the store and the joyous employee cheers greeting purchasers appears odd with an empty store as a back drop. The 10-year is 1.74%.  The euro is weak at 1.2842. Under 1.2830 will likely add to the broad market weakness. The BOJ intervention boosts the dollar/yen, which helps to buoy the dollar, and move the euro lower. Also, the ECB may cut rates on Thursday morning. DNDN is feeling some love today up 28%, looks like Keystone will be footing the bill for food and booze for everyone this evening. DNDN has formed an island from August to now on the daily chart so a print at 5.35-5.50 would be nice to test the resistance for the potential island reversal, but price would likely retreat so that is a good target to exit the long side and perhaps reload lower. Then again, the stock could perform an island reversal immediately jumping over 6 at anytime. Perhaps AMD, BBY and/or HPQ will show some signs of life as the days and weeks move along. The beat goes on, the SPX is now testing the sturdy 1424 support. Utilities are weak again today. Gold is now down 31 bucks.

Note Added 11/2/12 at 1:00 PM: SOX 376.55, bearish.  VIX 16.59, bearish. RTH 44.80, bullish. The drubbing of utes continues with UTIL at 471.83. The 50-week MA at 465.67 serves a a trigger for the markets to drop into free fall and this is now only six points away. Keystone's algo will be tracking UTIL 494.40 all next week; the bulls have a long road to hoe to bring price all the way back up to near 500, thus, the utes should continue to create market negativity. Markets are floating along sideways today. The action remains a toss-up. The bulls can flex their muscles if they breathe life into the SOX or push the VIX lower. For now, status quo into the weekend. Trader's are sneaking out the back door like a summer Friday session. Volume maintains the pattern this week of light action during the trading day, the run rate is at about 85% of a day's average volume. Gold is down 38 bucks. Oil has an 85 handle. The strength of the dollar is causing the large moves south with commodities. Dr. Copper is receiving a beating and will have to treat his own wounds this evening.  Note how the 1426.63 resistance level is placing a ceiling on price for the last two and one-half hours so keep an eye on that level. The euro is 1.2846; the 200-day MA is 1.2839. Bad things will happen to the equity markets if the 1.2830 level gives way. SOX, VIX and RTH will tell you the story today and into Monday.  Markets may simply float sideways into the weekend. Tech is leading the broad indexes lower with small caps leading everything lower today, a very bearish signal (RUT is the large leader lower today along with tech (COMPQ); the broad indexes (SPX and INDU) are following the tech and small cap leaders).

Note Added 11/2/12 at 1:57 PM:  The SPX lost the 1424 support. Next support is 1422 and very strong support at 1419, where price broke out of the sideways channel discussed yesterday morning. The euro, XEU, is at 1.2836; the 200-day MA is 1.2839, the bulls are losing their grip, now only holding on by a single fingernail.

Note Added 11/2/12 at 2:04 PM:  The SPX lost 1422 support, now printing a 1420 handle. VIX is up towards 17. Oil lost 85 and is now printing an 84 handle.  Gold is down 40. The euro is under the 200-day MA support at 1.2830. Hang on Betsy, the bulls have to bounce things immediately, otherwise, the downside could get out of hand. RTH is 44.73 well above the 44.44 danger line.  AAPL is down 15 bucks, quick, sell more iPads. Apple fell thru the 200-day MA at 588.66. Small caps are collapsing, the RUT is down 1.1% giving back all of yesterday's up move.

Note Added 11/2/12 at 2:37 PM:  The SPX now testing the strong 1419 support. RTH is 44.70.  Euro keeps hanging on by one fingernail.

Note Added 11/2/12 at 2:39 PM:  SPX fails 1419.  Oil is 84.77. Euro 1.2825. VIX 17.18.  Hang on folks.

Note Added 11/2/12 at 2:41 PM:  SPX now under 1417. RTH 44.63 now only 19 pennies above danger.  Euro 1.2824.

Note Added 11/2/12 at 3:31 PM:  SPX has a 1416 handle, check that, now 1415. VIX 17.32.  Oil 84.90.  RTH 44.52 now only 8 cents from causing a large down leg in the broad indexes. Euro 1.2830.  The Dow Industrials have now dropped 200 points off the high today. It is easy to appreciate the leadership power of the small caps and tech, where they go, everything else follows, and AAPL is 20% of the Nasdaq. Apple collapsing, now down over 20 bucks to 576.

Note Added 11/2/12 at 3:46 PM:  SPX 1413.  RTH is 44.49 hanging on by a hair. Blow on it and you will probably knock it over. VIX 17.44. There is fifteen minutes of trading time on tap. UTIL now has a 469 handle approaching the extreme danger point at 465-466.  The bulls need to send reinforcements quickly, unfortunately, the power required is being used at the New York marathon.

Note Added 11/2/12 at 4:00 PM:  The bulls ran out the clock. RTH closes at 44.46, but still settling out, watch the RTH 44.44-44.46 level as a key indicator come Monday morning. The closing print may take it under. Time for a slice of pumpkin pie to ponder the day. Best of luck and good wishes to all our friends on the East Coast dealing with the hurricane aftermath.  Hang in there.

Keystone's Morning Wake-Up 11/2/12; Jobs Report

Trader's start November off with a strong rally yesterday, the broad indexes all moving up over one percent.  Tech led the way higher, however, small caps did not display the same enthusiasm. Tech and small caps lead the broad markets in either direction.  The euro weakness, as equities move higher, is perplexing since the euro moves up with equities moving up. This morning the euro weakness continues, dropping thru the 1.29 level now printing 1.2875. Perhaps traders are anticipating a rate cut next Thursday morning, now only four trading days away, since Europe must weaken the euro to create growth. Over the last couple weeks Keystone has highlighted the 1.2880 and 1.2830 levels where the equity market bearishness should increase.

Today is the all-important Jobs Report, the last major economic data point before the presidential election. As noted last month, however, that Jobs Report was the most important data point of the year and it did not disappoint with the dramatic drop in the unemployment rate to 7.8% sparking controversy. Today should be much more calm.  If the rate prints 7.9% today, that would be the Goldilocks number, under the whole number 8 so this would benefit President Obama slightly, while moving a tick higher from 7.8 so the conspiracy theorists would have to back off.  Just in case, Jack Welch is on standby ready to tweet another controversial message. The consensus is for 125K jobs and a 7.9% unemplyment rate. Also pay attention to the hours worked and wage data. If there are more folks that have simply given up trying to find work, and considering the election conspiracy angle, it is not unreasonable to see another drop in the rate under 7.8%.

The market push higher yesterday was driven by semiconductors to a large extent. The SOX begins at 379.50.  Keystone's algorithm identifies 380 as a bull-bear line in the sand and price did tag 380 yesterday before pulling back. The SOX under 380 affects markets negatively, a move above 380 will cause markets to push higher.  In addition, the bounce in volatility on Wednesday gave way to a plunge lower yesterday. The VIX is under 16. Watch VIX 15.90 as the bull-bear line in the sand. Market bears will create negativity with the VIX above 15.90. The bulls will rule if the VIX drops under 15.90. Commodities also popped yesterday due to China's encouraging data but obviously, since they stifle all free speech, their data is highly manipulated. Watch GTX 4920, bulls win above, bears win if the GTX stays under 4920. Of great importance this morning is that Keybot the Quant, Keystone's algo, will likely flip to the long side if any two of the above three parameters turn bullish. The bears need to push RTH under 44.44 asap to reestablish the downward move for the broad indexes.  Bears also need the XLF to move under 15.60 to create further market negativity. The Jobs Report in less than one hour will dictate the winner.

For the SPX today, the bulls only need one point higher, to punch thru the strong 1429 resistance, and it will be off to the races higher. Key levels are only a few handles away such as Keystone's 200 EMA on the 60-minute chart, and the 50-day MA. Price moving thru these levels guarantee an extended bull rally for at least several days.  The bears would have to retrace yesterday's 15 handle move and drop under 1412 to accelerate the downside. A move thru 1413-1428 is sideways action today. Keeping it simple, the Jobs Report will set the tone today.  Futures are flat right now but will immediately react to the news. In a nutshell, the bulls want to see SOX 380 and higher and VIX under 15.90. If so, Keybot (upper left margin) will likely flip long. The bears want to see the RTH drop under 44.44.

Note Added on 11/2/12 at 8:40 AM:  The Jobs Report announces 171K jobs and a 7.9% unemployment rate.  The rate was Goldilocks. Hourly wages were down, hours worked flat, so companies have no incentive to hire anyone. If hours are not moving higher, that means companies are handling work loads with the employees they have so there is no reason to expand. The 171K number is better than the 125K expected and is good news but typically recoveries should be experiencing over 300K jobs per month. The low GDP growth accounts for the ongoing malaise. In addition, 150K jobs are simply needed to handle the new employees trying to enter the workforce. Gold drops 20 bucks now under 1700. The euro drops now at 1.2852.  The futures bounced higher on the news but have flattened out with the S&P's up six. This would punch the SPX thru 1429 and test the critical 200 EMA on the 60-minute at 1432.33 and 50-day MA at 1434.46. The S&P's are up 0.48% while the Nasdaq is up 0.23% so tech is not leading the upside today, so far. This is also important in reference to the SOX 380 goal the bulls need.

Keystone's November Seasonality for Trading the Markets

October results in the first down month for the SPX after four consecutive up months. November is the start of the seasonally strong pattern for stocks from November thru April where the largest gains on the long side occur in the markets.

November is the month when turkey's try to hide from Farmer Brown. After the Thanksgiving meal, the men lay on the couch, with a belt buckle loosened, watching football in between bouts of nodding off from the tryptophan ingestion.  The markets will be closed Thursday, 11/22/12, to enjoy the holiday. Markets will also close early at 1 PM EST on Friday, 11/23/12. This day after Thanksgiving is known as Black Friday, which used to represent the largest retail day of the year where many companies turn profitable on the year due to the strong sales this day.  In recent years, other dates nearer Christmas have taken the lead as the largest retail sales day, such as the Saturday before Christmas, but the day after Thanksgiving remains in the top three retail sales days for the year. Retailers are concerned this year since a small spike occurred in October sales due to Hurricane Sandy. Sales were likely pulled forward and will ultimately hurt the holiday sales. Further, money will be spent on house repairs and getting lives back in order rather than buying the new turtleneck or a cashmere sweater. Retail stocks typically peak 12/1/12.

November has 21 trading days.  This first week of November begins with two trading days.  The monthly Jobs Report is the first Friday, 11/2/12. Next week, the week of 11/5/12, is five full trading days.  OpEx week is the week of 11/12/12 so watch for the Tuesday to Wednesday market buoyancy from 11/13/12 to 11/14/12. OpEx Monday's, 11/12/12, tend to be positive as well. Housing Starts are important on 11/20/12. The Thanksgiving holiday week begins 11/19/12 and will consist of 3 1/2 days of trading, the markets are closed on Thursday with a half day Friday. Volume will be light during this week. The shortened Friday session is typically the most likely up day for the markets of the entire year. Typically, markets are buoyant in front of a holiday. The month closes with a full week of trading ending on a Friday.

November, on average, finishes up 0.9%. That would be an upward move in the SPX of about 13 points for the month.  The largest gains in the market are made from November thru April (typically a 7.2% gain over this five-month period); flat returns occur May thru October. Many traders look to invest money in early November and the action yesterday, 11/1/12, did not disappoint with a strong upside rally of over one percent for the major indexes to begin the month.  Q4 is typically the best quarter during the year with an average return of 4.3% during October-December. Tech and biotech are typically strong in Q4.

November and December are typically considered the two best months to buy stocks with traders getting in on the ground floor to take advantage of the bullish November to April period.  Pro's look at buying a New York REIT, such as NLY, since much of Wall Street bonuses are spent on real estate, but, perhaps the bonuses will be paltry this year. An old Wall Street adage says, "Buy on Thanksgiving and sell on New Years to pay the Christmas bills," thus, markets typically reward the long players from mid-November into the first week of January.  Congress in session, as well as the fiscal cliff drama, is a market negative.

Steel stocks typically run up from November into the end of the year. Traders like to buy steels the last week of November and sell them the last week of December, and then short them in January. The move higher for steels may be happening early since some have leaped higher and are not attractive moving forward. The Dawali Festival is in November so gold buying in India tends to trail off afterwards. There is also now an increasing interest in diamonds in lieu of gold. Some investment houses close out their books ending November so this sometimes leads to EOM selling. Markets are typically down one-half percent for the final two days of November.

Keystone's Eclipse Indicator highlights certain areas of the year as potential large market selling event areas. The April top this year was marked by this technique. Markets are in this eclipse window currently from 10/20/12 thru 12/20/12.  The period over the next week, and then the period between Thanksgiving and Christmas, are especially targeted for a large market selloff.  Interestingly, the markets dropped 4% over the last couple weeks but the eclipse indicator selloffs are typically far more serious. Markets tend to be buoyant at the full moon and tend to sell off moving into the new moon.  The new moon this month is 11/13/12, also the solar eclipse, and the full moon is 11/28/12, also the lunar eclipse. Bradley turn dates are 11/1/12 and 11/14/12 so November may prove to be a dramatic month with at least a couple trend changes on tap for markets.

The U.S. Presidential election is Tuesday, 11/6/12, so markets will react wildly the following day. Type 'Presidential' into the search box above to review potential plays depending on whether President Obama retains his seat, or, if Governor Romney wins.  The ECB rate decision and press conference is Thursday, 11/8/12, and a rate cut may be on tap. Europe must weaken the euro so a growth path can be established for this trouble continent.  The 18th Party Congress in China begins 11/8/12.  Troika is targeting a decision on Greece on 11/12/12 but this has been delayed from August thru now so do not hold your breathe.  The Spain bailout request drama continues. The ECB cannot institute its OMT bond-buiying program until Spain formally requests the bailout. This is required since Spain will be expected to accept conditionality and oversight to receive the funds. Spain is hesitant to give up part of their sovereignty.  The Catalonia regional elections are 11/25/12 so a Spain bailout request is probably unlikely until late November or December.

Keystone's Midday Market Action 11/1/12; Consumer Confidence; ISM

S&P futures were down five a few hours ago, now up two. Tech is leading the broad markets higher this morning which is bull-friendly. The euro was at 1.29-ish before Hurricane Sandy and ran up over 1.30 yesterday to bolster the equity bull case, but now hovers around the center area at 1.2960-ish.  Euro up means the broad indexes move up, and visa versa.  The SPX is moving thru a sideways channel 1406-1419.  On Friday, the SPX tested the all-important 1403 support level and bounced. Yesterday, price explored the 1406 bottom rail, and the 1419 top rail of the sideways channel and did not decide either way.  Bulls win above 1419.  Bears win below 1403-1406.  For today, if the SPX touches 1419, an upside acceleration will occur and 1424 will be tested quickly. The bears need to drop under 1406 to create a downside acceleration that will cause the SPX to pierce the strong 1403 support and drop under 1400 into the 1390's.  A move thru 1407-1418 is sideways action today. The 20-week MA at 1407.07 is a key support level moving forward. The month ends with the SPX logging a down month, the first down move after four up months. November begins today so new money will be put to work. Keystone will post the November Seasonality factors for this Autumn month at some point today. Today is a Bradley turn date so a window remains open for a trend change for the broad indexes to occur. The down move off the top was a four day move, now markets move sideways for five days, so perhaps a committment will occur, up or down, at any time.

China PMI overnight is a hair above 50 indicating expansion but the HSBC number remains under 50. Copper and commodities run higher on hopes that China's economic woes have ended and better times are ahead. The ADP Jobs Report is better than expected but they announced a change in the calculation methodology leaving trader's scratching heads as to its predictive ability for the Jobs Report tomorrow morning. Jobless Claims and other data are in line. Earnings are flat to better for most releases this morning so the futures catch a slight bid moving towards the opening bell.

The retail sector jumped yesterday and M earnings may help continue that happiness.  Watch RTH 44.44. Price is now above which creates broad market positivity.  Watch GTX 4920 (commodities), now influencing markets negatively. Watch XLF 15.60, now affecting markets bullishly. Any change to these three will send the broad indexes in that respective direction.  A market pivot point will occur at 10 AM EST when Consumer Confidence (delayed from Tuesday) and the ISM Manufacturing Index hit. Therefore, wait for the 10 AM mark for the markets to tip their hand on the preferred direction today. Europe continues to dictate market direction. Trader's continue to believe that Spain will ask for a bailout any day which maintains the Draghi support level at SPX 1400-ish. If trader's realize that Spain does not plan on requesting a bailout until the end of November or into December, the 1400 level will give way. Of course, if Rajoy has a change of mind, and decides to request a bailout, which will unleash the ECB's OMT bond-buying program, the equity markets will catapult higher. The markets are in a sideways funk where bulls will win above 1419 and the bears will win under 1406. Pay close attention to the 8 MA and 34 MA cross for the SPX 30-minute chart, now bearish, and also RTH 44.44, now bullish. The 10-year Treasury yield is at 1.71%.

Note Added 11/1/12 at 10:24 AM:  The 10 AM pivot results in an upside launch with both the Consumer Sentiment and ISM encouraging the bulls.  The 8 MA moves up thru the 34 MA on the 30-minute chart which forecasts bullishness for the hours and days ahead.  The SPX punched thru 1419 so 1424 was on tap which printed.  Price is now 1425.46 so then next upside resistance levels are 1426.63, 1429, 1431, 1432.63 (Keystone's important 200 EMA on the 60-minute chart), 1433, 1434.41 (50-day MA) and 1435. RTH remains above 44.44 helping bulls. GTX remains under 4920 helping bears. Watch the semiconductors, SOX, the 380 level.  The upside rally will have strong legs if the SOX, now at 374.29, moves above 380. If the GTX and SOX cannot achieve the targets listed, the upside rally will likely run out of gas. The 1429 strong resistance, and the 1432.63 R, are key levels now. The bears must fortify and stop movement above here while the bulls need to punch up thru which will supply further bull fuel. Tech (COMPQ) is leading the broad markets (SPX) higher which will keep the indexes elevated today. AAPL is flat at 598.

Note Added 11/1/12 at 12:14 PM:  RTH remains well above 44.44. GTX remains under 4920.  SOX is 377 knocking on the 380 door that will encourage the bulls further.  The SPX is at 1427 printing a HOD at 1428.35, so the strong 1429 R is stopping the bulls so far. The 2-hour, 1-hour and 30-minute charts want to see some buoyancy remain at these levels for the next few hours while the 15-minute, 10, and 5-minute charts are agreeable to price drifting lower now. A few hours of time would place the markets at today's close and tomorrow's Jobs Report will obviously create an inflection point.  AAPL remains weak but the COMPQ is up 1.5% and the SPX is up one percent. Tech is leading the markets higher today despite Apple.  Volume is light at a run rate of only about 84% of a day's expected volume. Interestingly, the euro is 1.2941 drifting lower today when it should be moving higher with such a strong rally underway. Yesterday copper was down, today up. Yesterday volatility was up, today down. Yesterday utes were up, today down, and the utilities sector is the underperfoming sector today. The 10-year yield is 1.72%. The bulls must punch up thru the strong 1429 R to continue the upside run.

Note Added 11/1/12 at 2:22 PM:  RTH is 44.67 safely above 44.44, bullish.  GTX is 4864 under 4920, bearish. SOX is 378.26 printing the highs of the day approaching the 380 level that will send the broad indexes another leg higher. The SPX 1429 R continues to serve as a ceiling today.  The weakness shown by the minute charts entered the markets with the SPX slumping a few handles but maintaining its elevated posture overall today. For the last hour and one-half, the SPX has back tested the strong 1424 support (which was a strong resistance level at the start of the day) and decided to hold that support and move higher once again. If price can come back up to the highs today and test the 1429 R that should set up the 2-hour, 1-hour and 30-minute charts negatively. Tech continues to lead the upside which feeds the bullishness. AAPL is at 598. The NYSE volume is below average and light today now only running at about three-quarters of a days average expected volume. The weakness in the euro is the interesting story today, now at 1.2936, printing 1.2929 a few minutes ago. The ECB meeting is less than a week away now, next Thursday morning, 11/8/12, only a day or so after when the result of the presidential election will be known. The only way that Europe can achieve growth is to see the euro drop, so perhaps trader's are already sniffing out a rate cut by the ECB, or is today simply more oddball action due to Hurricane Sandy? The VIX is slipping under 17 but it will continue to help the bears as long as it stays above 16. The bulls will rule if the VIX drops under 16.

Note Added 11/1/12 at 4:17 PM:  The SOX provided a dramatic finish, coming up to look at the 380 level Keystone highlighted this morning, then selling off. The semi's remain in play for tomorrow and will immediately tell you if the bulls have oomph, or not. RTH is 44.70. GTX 4857.  The SPX finishes at 1428 so the strong resistance at 1429 will be an important number to watch tomorrow. The bulls came to play today and November's new money ran into to stocks. Utilities sold off. VIX closed at 16.69 staying above the 20-day MA at 16.32.  Volume increased into the close and finished above an average day's volume, below yesterday's volume. The volume action is bookened at the opens and closes in this oddball week thus far. The Bradley turn may have marked the start of a recovery rally, SOX 380 and SPX 1429 will tell you if the rally continues tomorrow and of course, this all depends on the Jobs Report before the market opens.

SPX Daily Chart

May as well take a look at the daily chart to complete the series this morning. The blue circle shows the Bernanke put that has already failed. The QE3 Infinity announcement occurred at 1430-1440 and did not provide a floor in the markets. Emperor Bernanke is not wearing any clothes. The red circle is the Draghi put that has placed a floor in the markets at 1400-ish. For a more detailed discussion on this topic, type 'Draghi put' into the search box above. Price is now traveling thru the 1403-1419 support/resistance gauntlet as previously discussed. The red lines show a weak and bleak profile for the indicators which point to lower lows in price desired, especially the dropping MACD line.  The stochastics are oversold and its positive divergence helps to buoy prices and create this sideways action over the last five days.

The price action boils down to trader's trusting the floor in the markets at 1400-ish based on the Draghi put.  If Spain would announce its intention to seek a bailout, the ECB would immediately be able to initiate bond-buying and the bulls will run equities higher. Alas, Rajoy becomes more resolute in avoiding the bailout. In fact, it looks like no action will be taken by Spain until after the 11/25/12 elections, another three or four weeks ahead. When do traders realize that the Spain bailout is not on tap in the coming days? This realization will cause the SPX to fail at 1403, then 1400-ish and head lower, with the Draghi put failing. The only reason that the SPX hangs on in recent days is due to the trust that Spain will ask for a bailout any day. Will this trust disappear?

Small caps and technology lead the markets. During bullish rally times, the small caps (RUT) and tech (COMPQ) will lead higher, the wine is flowing like water, and people are happy since many folks only play the long side of the market. Small caps and tech are now leading the markets lower, however. Both the RUT and COMPQ have already dropped down to test at or near their 200-day MA's and the 20-day MA has crossed down thru the 50-day MA, a bearish signal, for both. The Dow Industrials (INDU) and S&P 500 (SPX) are following the RUT and COMPQ. Therefore, a test at or near the 200-day MA at 1380-ish would be anticipated moving forward. The 20-day MA should also cross down thru the 50-day MA to indicate further bearishness ahead. For the bulls, a back kiss of the 50-day MA will likely occur at some point forward but htis may be weeks ahead. Projection is for lower prices ahead down towards the 1370-1390 area. If the SPX pokes up above 1419, that will verify an upside recovery rally in place but that bounce will likely set up another shorting opportunity. As long as the SPX stays below 1435-ish, the markets will remain bearish for the forseeable future. Major SPX S/R is 1476, 1472, 1468, 1461, 1460, 1446, 1441, 1433, 1429, 1424, this current 1403-1419 zone, 1394, 1391, 1375 and 1370. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

SPX Weekly Chart 20-Week MA Support Test

The SPX is teasing the 20-week MA at 1407.07, a very important moving average. Watch this closely today.  Price came down yesteday to test this support and bounce so the bulls held this line in the sand, for now.  Bad things will happen if the 20-week MA fails. If so, the bulls have a last ditch fortification at the purple trend line. The purple line represents market support from the August waterfall crash bottom thru now, 15 months time. If the purple line at the 1390's gives way, bulls will lose all hope. Further downside targets are the horizontal support at 1360-ish and then down at the starting numbers for 2012 in the 1250-1275 area.

But first thing is first and if the bulls hold the 20-week MA, happier days may be ahead. A bounce off the 20-week MA would place the 1450 green dot in play. Another upside target is a print back inside the rising black wedge which would be a higher high than the intraday high this year of 1476. We have watched the negative divergence (red lines for the indicators) form all these many months. The divergence correctly forecasted the summer 2011 waterfall crash, this year's late April market top, and, more recently, the roll over from the triple top over the last month. The green dots showing the upside targets are not a high percentage bet since the red lines for the indicators are all showing weak and bleak profiles, wanting to see further lower lows in price.

Watch the 20-week MA moving forward, it will tell you a lot about which side is winning. The projection is that the 20-week will fail and price will likely bounce off the purple trend line for a relief rally, perhaps to back kiss the 20-week MA, then lower. Despite all the global stimulus, the weekly chart is strongly favoring the bears moving forward for the weeks and months ahead. Major SPX S/R is 1476, 1472, 1468, 1461, 1460, 1446, 1441, 1433, 1429, 1424, this current 1403-1419 zone, 1394, 1391, 1375 and 1370. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

SPX 30-Minute Chart 8 MA and 34 MA Cross Sideways Channel 1406-1419

The 8 MA crossed up thru the 34 MA at yesterday's opening bell so the bulls puffed their chests and settled in for an upside day, however, the pop higher was in concert with a large volume push in the opening half-hour to fulfill pent-up trading needs due to the two-day U.S. market closure, and the bounce disappeared quickly.  At luch time, the bears flexed their muscles pushing the 8 MA back under the 34 MA to keep the overall broad markets bearish moving forward.  The fight is a bull-bear tug-o-war and the sideways action on the chart shows that each side has an equal chance of emerging victorious for the days ahead.

The 8 and 34 MA's are only separated by 64 cents.  The sideways channel thru 1406-1419 is in place for five days. Remember how Keystone referenced the 1403-1419 'gauntlet' well in advance. We are in the fight now for this important trading zone. Bulls win above 1419, bears win below 1403-1406. If you scroll back a page or two the previous 30-minute chart shows the positive divergence set up (green lines) in more detail.  The oversold conditions, falling wedge and positive divergence launched the price off the Friday bottom at 1403-1406.  The previous chart also discussed the long and strong leanings of the indicators which wanted at least one higher high and that occurred with yesterday's opening bounce.  The price movement is sideways. The 8 and 34 MA cross cannot make up its mind. The blue sideways triangle shows how price is happy stumbling sideways. Yesterday's action shows price testing the upper channel boundary at 1419 and lower channel boundary at 1406.  Price would not breakout from either side and now moves sideways.

Watch the 8 and 34 MA cross to determine market direction, which is bearish to start the day.  Watch for any price break from the sideways blue channel as trading begins to hint at the direction preferred; 1415 and higher favors bulls, 1408 and lower favors bears. Watch the breakout from the sideways channel. For today, Thursday, bulls will win if they can touch the 1419 handle; this will cause an upside breakout. Bears will win under 1406 today. If you see a 1405 handle print, the SPX will likely start to fail quickly. Price will drop thru the 1403 sturdy support and collapse under 1400.  A move thru 1407-1418 today will indicate that markets may be content with stumbling sideways into the U.S. presidential election on Tuesday. S&P futures at this writing, four hours before the opening bell, are down five. The bears may want to make a run for the lower rail of the channel as the bell rings.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 11/1/12 at 2:34 PM:  The SPX jumped higher at the open pushing the 8 MA up thru the 34 MA indicating bullishness for the hours and days ahead. Keep an eye on the cross especially since the all-important Jobs Report occurs tomorrow (Friday) morning.