Trading Plan: Fiscal Cliff Goes To Wall Street
December 27, 2012 - 9:46am
Pre-market update (updated 9am eastern):
Europe is trading 0.5% higher.
Asian markets traded 0.6% higher.
US futures are trading slightly higher.
Economic reports due out (all times are eastern): Jobless Claims (8:30am), New Home Sales (10am), Consumer Confidence (10am)
Technical Outlook (SPX):
SPX sold off for the fourth time in the last five trading sessions.
We finished below all the moving averages except for the 200-day moving average.
Last time we dipped below the 20-day moving average, we popped right back above it the following day.
The critical level of 1411 still holds, but cannot afford to give up much more ground before allowing this market to slip in bearish territory.
SPX is quickly falling back into oversold market conditions in the short-term.
Weekly chart still looks bearish overall with the failure at overhead r...Continue reading this article »