The broad indexes jump higher at the open as the futures dictate. The Factory Orders number was a shade better than forecast so that gave the SPX the push to touch 1471. The SPX then jumps to 1573; the all-time closing high is 1576.09. The SPX has now touched the upper BB on the daily chart as highlighted this morning. The 8 MA moves above the 34 MA on the 30-minute chart handing the baton to the bulls again. Each time the bears try to get something going with the 8/34 MA cross, the dip-buyers, encouraged by the Fed's easy money, jump in and buy. Consumer staples and defensive stocks such as KMB and CLX continue to print new highs day after day, creating new asset bubbles as a result of the Fed money pump (and influx of money fleeing Europe). HPQ, DELL and TXN (chips) all receive downgrades today. SOX is 429 remaining above the 425 bull-bear danger line. VIX is 12.83 remaining low and bull-friendly. GTX drops to 4888. Thus, status quo with the three main market influences right now, so the markets float sideways to sideways up.
The GM pick-up truck numbers show trucks lingering on the lot a lot longer as compared to a couple months ago. This is not a ringing endorsement of a strong economy. Looks like contractors are content with keeping the old truck on the road for a while longer and wait and see how the economy goes. TRIN remains above one today, now at 1.09, but continues to leak lower as the bulls pound the upside. Watch the 8/34 cross, SOX 425 and VIX 14.55. Copper remains weak.
Note Added 4/2/13 at 2:12 PM: SOX stumbles lower printing LOD at 425.21, now at 425.55, remaining above the SOX 425 danger line. TRIN remains above one today at 1.09 but the bulls keep the indexes elevated with the low volatility. VIX remains under 13. The SPX is trading trough a tight 1571-1573 sideways range for the last three hours and a very tight 1571.75-1572.25, a measly 50 cent range for the last hour. The 8 MA on the 30-minute chart is starting to curl over to the downside as long as the SPX prints at 1572 or lower. TRAN is down 0.4% today. Copper battled back today but remains lackluster overall. Keybot the Quant will likely flip short if SOX fails 425 and the SPX drops under 1558.47.
Note Added 4/2/13 at 2:35 PM: Look at the collapse in the socks. SOX dropping through 425, then through 424 in a heartbeat. This action in the semi's should pull markets lower. The SPX is at 1569. The 10-year yield is 1.86%. TRIN is 1.03 moving lower to help the bulls. VIX is now up over 13 at 13.04. Things are getting interesting. SOX now at 423.60... 423.50 ... Keybot the Quant likely needs to see SPX 1558.47 today otherwise will probably stay long.
