Trading Plan for December 15, 2011
Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Producer Price Index (8:30am), Empire State Manufacturing Survey (8:30am), Current Account (8:30am), Treasury International Capital (9am), Industrial Productions (9:15am), Bloomberg Consumer Comfort Index (9:45am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
Futures are up strong - about 1%.
Asian markets were down 1.6%
Europe is currently trading higher at a clip of 1.5% on average.
Technical Outlook (S&P):
The S&P marched lower on a third consecutive day and is now short-term oversold.
The 1218 support level mentioned yesterday was broken, leaving 1183 the next level to be tested, and a much stronger one at that.
Volume was on par with what we saw on Tuesday - average.
The S&P managed to close below the 20-day and 50-day moving average despite bouncing off of them the day prior.
VIX was higher yesterday, but still seems to be lagging in strength despite overall market weakness.
Nice Double bottom on the S&P 5min chart.
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.