Trading Plan for June 25, 2012
Pre-market Update (Updated 9:00am eastern):
US futures are down almost -1% ahead of the open.
European markets are trading -1.1% lower.
Asian markets are traded -0.6% lower.
Economic Reports Due out (Times are EST): Chicago Fed national Activity Index (8:30am), New Home Sales (10am), Dallas Fed Manufacturing Survey (10:30am)
Technical Outlook (SPX):
SPX manage to pair some of its losses with a descent bounce on Friday.
Found support at the previous inverse head and shoulders breakout level of 1324.
If we fail to hold this level, a likely test comes again of 1306.
The 10-day moving average was reclaimed on Friday.
The 100-day moving average has been a tough resistance barrier for the market of late.
In order to resume the rally that started off of the 6/4 lows, bulls need to drive price back above 1360.
Market is nearing oversold levels in the short-term. One or two more good sell-offs should do it.
There is an established uptrend in place on SPX off of the 6/4 lows with consecutive higher-highs and higher-lows now (two of each).
SPX has a confirmed the inverse head and shoulders price pattern in place.
30-minute chart shows price action pulling back to support and the previous area where significant consolidation occurred.
VIX at 18 and below the bearish mark of 20.
My Opinions & Trades: