Trading Plan for March 19, 2012
March 19, 2012
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RELATED TICKERS: SPY
, DIA
, QQQ
Economic Reports Due out (Times are EST): Housing Market Index (10am)
Premarket Update (Updated 8:30am eastern):
US Futures are slightly negative.
Asian markets saw its trading range from +0.2% down to -1.0%.
European markets are trading 0.4% lower.
Technical Outlook (S&P):
The market indices finished in mixed fashion: the Dow finally broke its seven day winning streak and the S&P extended its weekly streak to 5 straight and 10 out of its last 11. Quite impressive!
Volume was at its highest level since 12/19 of last year and primarily due to the quadruple witching (opex expiration), which coincidentally was the same reason for 12/19's volume too.
One major concern for equities is the % of stocks that continue to trade below its 40-day moving average and that continues to drop daily.
The S&P, even during this rally tends to come back down to the 10-day moving average and trade in line with the MA which at this point is 25 points above it - good reason to believe that it will contract back to that level in the short-term (i.e. 1380-1390)
Major overbought signals in the short-term.
Price-level resistance can be found at 1428.
Nearest support level for the S&P lies around 1378
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