Trading Plan for February 22, 2012
Economic Reports Due out (Times are EST): MBA Purchase Applications (7am), ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Existing Home Sales (10am)
Premarket Update (Updated 9:00am eastern):
US Futures are slightly weaker heading into the open.
Asian markets traded higher - ranging from 0.3% up to 1.1%
European markets are trading lower by about -0.5%.
Technical Outlook (S&P):
S&P formed a spinning top/doji candle stick using a SPY chart.
All support levels are still held on the S&P
Volume was light yet again.
Greece was downgraded by Fitch from "C" to "CCC" with default being considered "Highly Likely" - little material impact to the financial markets though.
1370, when looked through the prism of a 15-year chart, represents a very strong price level where markets have historically reversed at.
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 1339, 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 an unwavering 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.