Trading Plan for June 18, 2012
Economic Reports Due out (Times are EST): Housing Market Index (10am)
Pre-market Update (Updated 8:30am eastern):
US futures are moderately lower ahead of the open, after giving up their modest overnight gains.
European markets are trading mixed/flat, with STOXX 50 trading -1.2% lower.
Asian markets traded on average 1.5% higher.
Technical Outlook (SPX):
Great day for the S&P on Friday as they managed to put in a 'higher-high' in the market, and establish an uptrend in the market off of the 6/4 lows
Though I wouldn't consider it to be a strong one at this point.
The opportunity exists (if we bounce off of the gap-down) for the S&P to test the 50-day moving average.
Quite a ways from current price, but ultimately, if the price can clear 1401 we'll have a market that is very bullish.
Represents the slightly descending resistance level off of the 4/2/12 highs.
SPX confirmed the inverse head and shoulders pattern on Friday.
Of late, respectable support lies at the 10-day moving average.
Has touched it multiple times in the past 2 weeks and held each time.
IH&S pattern very obvious on the 30-minute chart.
Confirmed on Friday.
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.
Measured by recent highs to its most recent lows.
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: