Daily Trading Plan for December 19, 2011
Economic Reports Due out (Times are EST): Housing Market Index (10am)
Premarket Update (Updated 8am eastern):
Futures are moderately higher heading into the open.
Asian markets are weaker with over -1% in losses.
Europe is trading higher between +0.2% and +1.3%
Technical Outlook (S&P):
The S&P for the last two days have given up the early morning gains for two straight days and to close notably off of each day's highs.
1191 seems like the logical area for the S&P to drop to before support kicks in.
Expect a very light volume week - especially as we head towards the Christmas holiday, volume will dramatically drop off.
Below 1217 breaks 3-day support on the 5 & 30 min chart.
S&P is short-term oversold. But doesn't preclude the market from dropping lower, just that the risk trading to the short-side increases.
If the S&P breaks 1209 on the daily chart, then you have support at 1187, and then again at 1158.
1224-5 on the 30 min chart, represents strong resistance.
Commodities look as if they could continue to bounce back as they did on Friday.
Watch the VIX - it's not on board with this sell-off at all, having dropped for a second straight day (bullish).
Trend-line off of the 7/7 highs, just above the 200-day MA on the S&P, continues to act as resistance to price as well.
Note the larger downward channel that we are in as noted below.