Trading Plan for June 29, 2012
Technical Outlook (SPX):
SPX made a strong recovery yesterday into the close, eliminating much of the weakness from earlier in the day.
Today the market is experiencing additional strength off of positives out of Europe.
A close above 1358-60 would be huge for market bulls. Would confirm that the upward trend is still intact and in full-force.
Early morning strength puts us above 1335 and outside of the consolidated price range from the past 5 days.
Volume continues to remain relatively light.
Could see a lot of window dressing with today being the last trading day of the second quarter.
Today's strength puts the market back above the 10 & 50-day moving averages.
Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows.
Would represent a 'lower-low' in the market.
Bulls have in place a bullish island reversal on the SPY chart, which is very similar to the one that we put in on 6/1-6/5 and rallied thereafter for a two-week period.
VIX just a shade below 20.
My Opinions & Trades: