Trading Plan for March 2, 2012
Economic Reports Due out (Times are EST): None
Premarket Update (Updated 8:30am eastern):
US Futures are down moderately.
Asian markets saw gains of 0.8%.
European markets are trading -0.3% lower at the moment.
Technical Outlook (S&P):
Yet again, the 10-day moving average held for the S&P as the index closed at new recovery highs.
Volume was less than yesterday's spike but still remained at average
All existing uptrends remain firmly intact.
10-day moving average is in play today at 1366. The 20-day MA could be as well on any descent selling at 1356.
Key for the bulls, at a minimum is to consolidate above 1370 which represent strong price level support and where we made new recovery highs.
Divergence in VIX as it is showing relative strength against the S&P making new highs of late (inversely correlated)
30-minute chart on the S&P still looks healthy with uptrend still in place.
We've yet to see a sell-off this year that exceeded 1% to the downside.
1370, when looked through the prism of a 15-year chart, represents a very strong price level where markets have historically reversed at.