Trading Plan for July 3, 2012
Pre-market upadate (7am eastern):
European markets are trading 0.4% higher.
Asian markets traded 1.0% higher.
US Markets are looking at a flat open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Factory Orders (10am), Market closes at 1pm
Technical Outlook (SPX):
SPX managed to put together a solid 'follow-through' day after a huge rally on Friday.
SPX has now made new highs on the uptrend that began on 6/4.
With the market closing at 1pm today, volume should be light, and somewhat erratic.
We've moved decisively into short-term overbought
Resistance should start coming through if the SPX can eventually get into the 1390's.
We've broken through and held the 100-day moving average, despite the previous failed attempts .
Yesterday provided the market with a new higher-high.
Strong upward trend in place.
Volume in general continues to be relatively light during the past month of trading.
30-minute chart looks like a traditional breakout chart, though overextended in the short-term.
Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows.
Would represent a 'lower-low' in the market.
VIX dropping hard and is now below 17.
My Opinions & Trades: