Trading Plan for March 9, 2012
Economic Reports Due out (Times are EST): Employment Situation (8:30am), International Trade (8:30am), Wholesale Trade (10am)
Premarket Update (Updated 8:00am eastern):
US Futures are flat ahead of the employment number.
Asian markets traded 1.4% higher.
European markets were mixed/flat.
Technical Outlook (S&P):
Employment number will go a long ways in determining market strength for today and going forward.
Yesterday's rally managed to wipe out the losses from Tuesday's sell-off and within reach of making new recovery highs.
The S&P is already back to trading above the 10-day and 20-day moving averages again.
A break of Tuesday's lows would signify the last two days of market strength being nothing more than a dead cat bounce and will lead to further action to the downside.
A rally that takes us above to a close above 1378, would indicate the market expanding and starting a new leg higher.
The 30-minute chart absolutely needs the S&P to make a new high in the very near future, as it has formed lower-lows, but has strong support at the 1340 level.
Volume has dropped off each of the past two days.