JPM and WFC report earnings with JPM beating but WFC laying an egg. WFC dropped over 2.5% on the news and is now down 3.6% pre-market. JPM bounced slightly on their news but drifted lower ever since and is now down one percent pre-market. AMD lowered estimates last night and is taking the pipe pre-market down 10% to 2.9-ish. INTC is down today in sympathy. AAPL is up less than two bucks pre-market. With the banks weak, tech and chips weak, and copper weak as well, it is a mystery how the S&P futures are up five points.For today, watch the utilities sector closely. The bulls need to punch up thru UTIL 481.36 to signal that a sustainable upside market rally is at hand. The market bears are fine if they keep UTIL under 481.36. Into the close, drama will occur since Keystone's algorithm will be tracking UTIL 478.43 next week, thus, watch the action into the close. If UTIL closes under 478.43, the bears remain in good shape into next week. If UTIL closes above 478.43 today, Keybot the Quant will be in position to potentially flip long on Monday morning.Watch RTH 44.50, JJC 46.45 and VIX 16.80. If price moves across any of these price levels the broad indexes will take a strong leg lower. For the SPX today, starting at 1433, the bulls need to touch the 1444 handle to launch an upside acceleration and place the bulls back in biz. The bears need only a tiny smidge of red to create a downside acceleration at the bell but alas, the futures are green. Interestingly, however, in the time it took to type this missive, the S&P's are now up less than a buck. A move thru 1434-1443 is sideways action today. Pay attentionn to AAPL which will affect tech. Also watch AMD, INTC, HPQ, DELL and MRVL to determine the strength, or weakness, in tech and chips today which will push the markets in that respective direction. The COMPQ vesus SPX percentage moves are important since tech leads the market direction. VIX starts the day at 15.59 above both the 20-day MA at 15.09 and 50-day MA at 15.44. Consumer Sentiment will create a market pivot point at 9:55 AM. The AAPL iPad mini is tentatively scheduled for release on 10/23/12 two days before earnings. The euro is 1.2980.Note Added 10/12/12 at 9:43 AM: Flat markets so far. Watch VIX now deciding if it wants to maintain the 50-day as support and start heading higher, or not. UTIL 479.20. RTH 44.77 only 27 pennies above the danger level. Retail Sales numbers hit on Monday. JJC hanging on to the 47 level so far. Consumer Sentiment in ten minutes. Keystone needs a couple heart pills.Note Added 10/12/12 at 10:27 AM: UTIL teased the 480 psychological resistance level twice so far today, now printing 478.96. VIX is 15.26 and traveled down to 15 losing the 50-day MA; see if it can regain this level at 15.39. The retail sector may finally be giving up the ghost, RTH is 44.74 only 24 points above danger. The markets are not yet tipping their hand, the action is sideways. Keystone took profits on the overnight FAZ trade exiting the position. The puking in WFC made the trade work.Note Added 10/12/12 at 11:52 AM: UTIL falls on its sword, staying under 481.36 and even more importantly well under 478.43 (important for all next week) now printing 475.73. This is very bearish for markets if it holds all day. RTH is hanging on by a thread at 44.64. The bears will accelerate the market downside if RTH loses another twenty cents. JJC lost 47 now printing 46.92. VIX approaching 16.Note Added 10/12/12 at 12:22 PM: SPX 50-day MA is 1428.36. UTIL price is 475.55, the 20-day MA is 475.26 and the 50-day MA is 475.82, a confluence, the price action here is important, watch for a potential collapse. AAPL is down three at 631 and looking weak. COMPQ is -0.18% while SPX is down -0.38% so tech is not leading lower today. This keeps the bulls in the game and allows them to keep the RTH's head above water. The SPX tagged the 50-day MA so traders are now deciding if they want this support to hold, where they will run in and buy, or, if they are going to let her go. Failure of the 50-day would lead to support levels at 1419, 1406 and 1403.Note Added 10/12/12 at 1:29 PM: The SPX test of the 50-day MA continues. Tech leads and AAPL was first to lose the 50-day MA, then the Nasdaq and QQQ's fell thru a couple days ago. The RUT has fallen thru the 50-day MA and the SPX and Dow Industrials are teasing. Since tech leads, one would figure the bears have the edge since the broad indexes should follow tech's lead. Further, tech and small caps are the market leaders so if they are leading down that is bearish for markets. RTH is hanging on at 44.65. Gold keeps moving lower now off eleven bucks to 1760. Weak copper is a bearish indication moving forward. JJC is 46.90 starting to move towards the 46.25 danger level (these numbers fluctuate slightly so watch 46.25 now). VIX remains at 16. UTIL continues to play around with the support confluence at 475-476. If RTH, JJC and VIX remain in the bull camp today, the SPX 50-day MA will carry clout as well as UTIL 478.43; the latter two will provide an early indication for Monday's trade. Tech is not leading downwards today so this allows the markets to be fickle about deciding if they want to bounce, or die. If the COMPQ (now -0.22%) starts to lead the SPX (-0.40%) down, the markets will tumble lower.Note Added 10/12/12 at 3:54 PM: UTIL is at 475. RTH, JJC and VIX staying on the bullish side as they started today although considerable weakness has appeared. The VIX is sneaking up over 16. SPX is sitting directly on the 50-day MA so it will be a photo finish.Note Added 10/12/12 at 4:10 PM: UTIL finished under 478.43 so the bears are strongly in the driver's seat. UTIL 478.43 is important thru next Friday. Retail Sales is Monday setting up lots of drama for RTH to start the new week since 44.40-44.50 will cause the broad indexes to take another leg lower. DLTR warned. Telecom sector got pounded this week. Keep watching copper, JJC, and volatility, VIX, which finished over 16. The SPX finished at 1428.59 only 21 pennies above the 50-day MA at 1428.38, the bulls and bears agreeing to park the indexes on the fence and decide direction on Monday. Tech and small caps lead the markets and AAPL, the Nasdaq, QQQ and the RUT are all under their respective 50-day MA's.