Today's Trading Plan: Expect Another Test of Yesterday's Lows
December 28, 2012 - 9:49am
Pre-market update (updated 9am eastern):
Europe is trading 0.7% lower.
Asian markets traded 0.5% higher.
US futures are trading moderately lower.
Economic reports due out (all times are eastern): Chicago PMI (9:45am), Pending Home Sales Index (10am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am)
Technical Outlook (SPX):
Markets yesterday finished lower for the fourth straight day and fifth out of the last six sessions.
Rallied more than sixteen points in the last hour and a half to only finish down nominally.
Huge doji hammer on the SPX and SPY.
SPX is officially in oversold territory now (short-term).
At some point in the near future it is likely we will test those lows again that were formed intraday yesterday.
SPX is continuing to price in the strong possibility that we are going over the "Fiscal Cliff" ...Continue reading this article »