Today's Trading Plan: Don't Count The Bulls Out Here
February 21, 2013 - 9:18am
Pre-market update (updated 8am eastern):
European markets are trading -1.8% lower.
Asian markets traded -1.8% lower.
US futures are trading slightly lower ahead of the opening bell.
Economic reports due out (all times are eastern): Consumer Price Index (8:30am), Jobless Claims (8:30am), PMI Manufacturing Index Flash (8:58am), Existing Home Sales (10am), Philadelphia Fed Survey (10am), Leading INdicators (10am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am)
Technical Outlook (SPX):
Heavy, heavy sell-off yesterday that pushed us right through the 10-day moving average.
20-day moving average is set to be tested at 1510. This will be the first legitimate test of the 20-dma this year.
Another sell-off today that takes us below support at 1495 (16 points away) would likely lead us to testing the lower, rising channel (see below) at 1475.
The last time we experienced a heavy sell-off in the markets it was met with an equal bounce the following day.
Volume was above average and supported the overall market move in regards to the intensity of it.
The VIX popped up nearly 20% yesterday from the low 12's up to the ...
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