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Trading Plan for June 15, 2012

June 15, 2012 – Comments (0) | RELATED TICKERS: SPY , DIA , QQQ

Economic Reports Due out (Times are EST): Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Industrial Production (9:15am), Consumer Sentiment (9:55am)

Pre-market Update (Updated 8:30am eastern):

US futures are slightly higher ahead of the open. 

European markets are trading 1.2% higher. 

Asian markets traded on average -0.6% lower. 

Technical Outlook (SPX):

Solid day for the bulls yesterday, as price action is finally starting to move out of the 5-day consolidation range. 

To spur on the bulls to additional buying, there needs to be a close above 1334

Today is options expiration so there is an increased likelihood of volatility in the market (as if we don't have enough already). 

50-day moving average could create headwinds for SPX at 1347. 

Continue to follow SPX's 10-day moving average for short-term support in this market. 

Inverse head and shoulders forming over the past month - currently working on the right shoulder - could see confirmation today. 

IH&S pattern very obvious on the 30-minute chart.

SPX is no longer overbought. 

Volume remains relatively average. 

The markets in general have pulled back roughly 10% off of its recent highs which is typically considered a "pullback" in the markets. 

A break below 1306 would represent a resumption of the downward trend. 

VIX is still elevated and rests above 21 - below 20 and the bear's hopes for a break lower is greatly hampered. However, it did take a pretty solid hit yesterday. 

My Opinions & Trades:

Charts: