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Trading Plan for September 11, 2012

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September 11, 2012 – Comments (0) | RELATED TICKERS: SPY , IWM , DIA

Pre-market update (updated 8:30am eastern):

European markets are trading -0.2% lower. 

Asian markets finished mixed but overall -0.3% lower. 

US futures are trading slightly higher ahead of the bell. 

Economic reports due out (all times are eastern): Consumer Credit (3pm)

Technical Outlook (SPX):

We got a pullback yesterday, that after two huge days of cumulative gains. 

Friday's action was completely outside of the upper Bollinger band (2 std devs), which is highly unusual for the markets, and usually follows with a pullback. 

Yesterday's sell-off puts us back inside that upper Bollinger band which is where we should be trading. 

If we continue to pullback today, look for some dip buying opportunities around 1419. 

We are overbought as of yesterday's close. 

Volume has declined slightly over the past two trading sessions. 

Test at 1440 resistance is in play today. While there isn't a lot of resistance overhead, this is a minor resistance level worth noting. 

The 10-day moving average is back above the 20-day moving average. 

SharePlanner Reversal Indicator shows a bearish divergence which is worth noting. 

FOMC Statement occurs on an unusual Thursday at 12:30pm est (typically Tuesday or Wednesday). 

Long-term uptrend support off of the 6/4 lows now shows support at 1396.

30-min chart shows a nice uptrend now in place with higher-highs and higher-lows. 

VIX surged yesterday and now back above 16. 

One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3

If another sell-off were to ensue, watch for a break and close below 1396 for a new lower-low in the market.  

My Opinions & Trades:

Charts:

 

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