Trading Plan for December 12, 2011
Futures are moderately lower heading into the open.
Asia was mixed but on the whole, was up 0.8%.
Europe is trading lower, on average about -1.0%
Friday provided a surprising and strong rebound in the market after Thursdays significant sell-off.
Despite Friday's rally, price is just below the 200-day moving average and the downward trend-line off of the 7/7 highs.
Four out of the last five trading sessions have failed to break through this trend-line.
Gap-up/gap-downs continue to dominate (or plague) this market and limiting intraday moves during market hours.
Note the larger downward channel that we are in as noted below.
On the 30 minute S&P chart, note that there is inverse head and shoulders pattern forming dating back to late October.