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Trading Plan For Sept. 8, 2010

September 08, 2010 – Comments (0) | RELATED TICKERS: SPY

Current Long Positions (stop-losses in parentheses): TICC (8.64)

Current Short Positions (stop-losses in parentheses): None

BIAS: 3% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

Futures are currently break-even.

No major news events scheduled for today.

Bulls failed to push through the upper-line of the downward channel.

We are basically stuck in a trendless market.

Wedge forming on the S&P where a breakout/breakdown would signify a major shift in market sentiment.

Difficult to take yesterday's sell-off serious considering the light holiday volume and the overbought nature of the market.

Some significant resistance levels overhead for the bulls: 200-day moving average at 1,115. The infamous 1,130 level is the most significant price level for the bulls to break through.

The 1,104 price level will be what I am watching today.

Bears need to aim for the 1,080/50-day moving average, and ultimately breaking the ultra-stubborn 1,040 price level.

Actions I Will Be Taking: