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Trading Plan for Sept. 24, 2010

September 24, 2010 – Comments (0) | RELATED TICKERS: SPY

Current Long Positions (stop-losses in parentheses): TICC (9.04), BRKR (12.95)

Current Short Positions (stop-losses in parentheses): LMT (76.35)

BIAS: 3% Long

Economic Reports Due Out (Times are EST): Durable Goods Orders (8:30am), New Home Sales (10am)

My Observations and What to Expect:

Futures are slightly positive

S&P left the door open to further declines in the days ahead, with yesterday's bearish close. 

Break in the neckline on the inverted head and shoulders pattern, shouldn't be a huge concern for the bulls - only if upon a bounce in price, it struggles to reclaim that critical price level. 

Market is no longer overbought. 

Next level to test for the bears is 1116 on the S&P, which represents the 200-day moving average. 

38% Fib retracement on the S&P is at 1107. 50% is at 1094. Right now we are at the 23% retracement. 

The main goal for the bulls is to re-gather its footing, and push above the previous highs at 1148. 

Here Are The Actions I Will Be Taking: