Today's Trading Plan: Overextended But Still Running
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...Continue reading this article »