Trading Plan for March 22, 2012
Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), FHFA House Price Index (10am), Leading Indicators (10am), EIA Natural Gas Report (10:30am)
Premarket Update (Updated 8:30am eastern):
US Futures are down moderately ahead of the open.
Asian markets traded 0.3% higher.
European markets are trading -1.3% lower
Technical Outlook (S&P):
We are setting up for a test of the 10-day moving average. I always think that this is significant from a short-term perspective, but in recent past, there has been little additional downside that occurs. Currently, the MA is around 1396 at today's open.
The 20-day moving average is around 1380, but I highly doubt we'll see any challenge there.
These days of weakness, in recent past, has been bought up very quickly within 2-3 days and led to significant rallies.
Volume continues to remain slightly below recent averages - the ongoing theme in 2012.
The S&P is coming off of short-term overbought levels.
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.
Price-level resistance can be found at 1428.