Trading Plan for March 15, 2012
Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Producer Price Index, Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Bloomberg Consumer comfort index (9:45am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
Premarket Update (Updated 8:30am eastern):
US Futures are looking at a slightly higher open.
Asian markets had a descent day, with about 0.5% in average returns.
European markets are trading mixed/flat.
Technical Outlook (S&P):
For the market not to give up more gains than it did yesterday after 5 straight days of gains, in which the 5th day had a resounding spike higher, was a strong indication that this market is trying to take a breather and possibly consolidate for a while before making another push higher.
For the bulls though, it needs to make a much stronger higher-high from its previous one, just to maintain a healthy channel, because when the depth of the higher-highs dwindle, the market begins to exhaust itself as well.
Volume remained slightly above recent averages.
Short-term the market is back in the overbought territory.
Price-level resistance can be found at 1428, and of course psychologically 1400 will be a test for the bulls as most milestone figures are.
Nearest support level for the S&P lies around 1356 - nothing really nearby.