Today's Trading Plan: Typical First Day of the Month Trading
December 3, 2012 - 8:51am
Pre-market update (updated 7am eastern):
Europe is trading 0.7% higher.
Asian markets traded in a wide range from -1.2% up to +0.6%.
US futures are moderately higher ahead of the open.
Economic reports due out (all times are eastern): PMI Manufacturing Index (8:58am), ISM Manufacturing Index (10am), Construction Spending (10am)
Technical Outlook (SPX):
Another day of consolidation below the 50-day moving average on SPX.
Most importantly on the price action is that it is not being rejected at the 50-day MA - just settling below it for now.
Today's gap open should put price action right at, or above the moving average.
Volume was strong on Friday, but most likely due to end of month window dressing.
Stocks remain overbought in general and on the SPX. This can last a while, and does not necessarily mean that a pullback is looming.
Ideally for the ...
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