Trading Plan for February 21, 2012
Economic Reports Due out (Times are EST): Chicago Fed National Activity Index (8:30am)
Premarket Update (Updated 9:00am eastern):
US Futures are slightly green heading into the open.
Asian markets were mixed in trading.
European markets are trading lower by about -0.5%.
Technical Outlook (S&P):
Today's open will encompass the gains from Monday while the market was closed as well as last night and this morning's futures trading.
1370, when looked through the prism of a 15-year chart, represents a very strong price level where markets have historically reversed at.
Watch the highs from last year on 5/2/11 to potentially be tested, which also rests at 1370.
Volume was higher on Friday, mostly due to it being options expiration.
The S&P has followed closely to the 10-day moving average since mid-December. However, the two breaks below that have occurred since, have meant very little for the bears.
The 20-day moving average looks like a very strong rising support level and at 1337, if that price level broke, would represent a dramatic shift in market sentiment.
We have yet to have a 1% pullback this year - the 13th longest such streak since 1928.
And yes....We remain firmly in overbought territory.
Hopefully Greece is behind the market now that they got their "agreement" (but doubt it).
30-min chart shows a solid uptrend in place.
Price level support lies at 1326 and then again at 1300. A break of the latter in coming days would drastically change market behavior/outlook.