Trading Plan for March 27, 2012
Economic Reports Due out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), Richmond Fed Manufacturing Index (10am), State Street Investor Confidence Index (10am), Bernanke Speaks (12:45am)
Premarket Update (Updated 8:30am eastern):
US Futures are mixed/flat ahead of the open.
Asian markets soared higher - over 2%
European markets are seeing a trading range between -0.1% and +0.5%
Technical Outlook (S&P):
Very bullish day for the market yesterday, breaking out to new post-recovery highs.
One thing that is very concerning to me is the fact that we have about 4 gaps, dating back to 3/6 that have yet to be filled by the markets.
The 10-day moving average that was broken last week, was recaptured yesterday.
Watch for how long this new bounce off of previous lows lasts - if it is shorter in terms of time and price than the one that took place from 3/7-3/19, it could be an indication this market is losing its ability to climb higher in the short-term.
Volume was about as high as any reading that we've seen since 3/16 - but still nothing spectacular.
30-minute chart looks healthy, putting in higher-highs and higher lows.
Bearish wedge pattern forming in the intermediate term has yet to confirm, but looks ominous.
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 next price-level resistance can be found at 1428.