Trading Plan for June 7, 2012
Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Ben Bernanke Speaks (10am), Quarterly Services Survey (10am), EIA Natural Gas Report (10:30am), Consumer Credit (3pm)
Premarket Update (Updated 7:30am eastern):
US futures are up moderately ahead of the open.
European markets are trading 1.3% higher.
Asian markets traded on average 1.3% higher.
Technical Outlook (SPX):
Huge day for the S&P yesterday as it managed to climb back out of the downward trend-line at 1310 and breakthrough the bullish wedge that had been forming.
Next key resistance level for the S&P to break through would be 1335.
Market is well off of oversold conditions after yesterday's bounce.
S&P crossed back above the 10-day moving average, and a shade below the 20-day moving average. The latter of the moving averages has been problematic for the bulls to cross above recently.
Major bottoms or at the least, interim bottoms, tend to make huge gains in the initials days following the bottom. See last October and September 2010.
Minor support at 1249, 1209 would also represent a level of price support, should we close below 1275 support. .
30-minute chart looks to reverse the current downtrend.
Nearest level of resistance for the S&P is at 1334 and 1340 and then again at 1357.
VIX is still elevated and rests above 24.
My Opinions & Trades:Charts: