Today's Trading Plan: Overextended But Still Running

From SharePlanner
January 22, 2013 - 9:40am

Pre-market update (updated 8:30am eastern): European markets are trading 0.4% lower. Asian markets traded mixed.  US futures are trading mixed and flat ahead of the opening bell.  Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30am), Existing Home Sales (10am), Richmond Fed Manufacturing Index (10am) Technical Outlook (SPX): SPX finished for the fourth straight day in the green.  Price action is up against the upper channel band. Last time this occurred we saw a slight pullback in the markets. Upper channel resistance today sits at 1493.  Continues support sits at the 10-day moving average, as we have managed to trade above it now for 13 straight days.  At 1451, you have a significant inflection point for the markets. If the market pulls back and price dips below this price level, there is a significant gap to fil...

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