Trading Plan for December 22, 2011
Economic Reports Due out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Chicago Fed National Activity Index (8:30am), Corporate Profits (8:30am), Bloomberg Consumer Comfort Index (9:45am), Consumer Sentiment (9:55am), FHFA House Price Index (10am), Leading Indicators (10am),
Premarket Update (Updated 8am eastern):
Futures are slightly up, but has sold off on the GDP report. .
Asian markets were down about 0.5% on average
Europe is trading higher this morning at about a 1.2% clip.
Technical Outlook (S&P):
A break of the downward trend off of the 7/7 highs, can be broken today if we manage to close above 1257.
As we continue to trade in a triangle pattern, whose range continues to tighten by the day, watch for support on any major sell-off to kick in at at 1199.
Support/buying kicked in yesterday at the 10-day and 50-day moving average.
VIX continues to trade very bullish, trading in negative territory yesterday, despite the market doing the same yesterday prior to the rally we saw.
On the 30 minute chart, look for a move below the 1209 support level.
The 5-minute chart shows resistance near 1244-45.
Expect volume to dramatically dry up between now and the end of the year.
Note the larger downward channel that we are in as shown below.