Trading Plan for February 6, 2012
Economic Reports Due out (Times are EST): Treasury STRIPS (3pm)
Premarket Update (Updated 8:40am eastern):
US Futures are slightly lower heading into the open.
Asian markets saw returns range from -0.2% up to +1.2%.
European markets are down ranging from -0.2% down to -0.5%.
Technical Outlook (S&P):
The S&P, as well as other indices (particularly the Russell), have gone completely parabolic in their price action of late.
1333 - my line in the sand for bears was crossed off of a solid Employment number on Friday, and closed above it in a convincing fashion.
As a result, this breaks the long-term trend-line off of the 2007 highs, that has acted as resistance.
On the other hand, we remained as overbought as ever, which eventually has to be reconciled.
Volume picked up some on Friday.