Signals & Trading Plan for Monday 12/9/19

Excerpts from trading plan for Monday:

Market Context
Here are some events to prepare for this week.

• Wed 12/11:  FOMC announcement
  
• Thu 12/12:  ECB announcement; producer price index; jobless claims.
  
• Fri 12/13:  Import/export prices; retail sales; business inventory.
  

From WSJ:
"The S&P 500 is having its best run in six years, but individual investors are fleeing stock funds at the fastest pace in decades.  Investors have pulled $135.5 billion from U.S. stock-focused mutual funds and exchange-traded funds so far this year, the biggest withdrawals on record, according to data provider Refinitiv Lipper, which tracked the data going back to 1992.”

“Investors and policy makers are bracing for new disruptions to short-term cash markets going into the end of the year. Federal Reserve officials have so far committed about $350 billion to efforts aimed at calming the market for repos.”

What might we conclude from all this info?

There are still a lot of potential buyers out there to keep the bullish momentum going in the stock market.  But keep an eye on liquidity issues in arcane debt markets.  When liquidity suddenly dries up in these debt markets is when the current stock Up Trend may end.

Support & Resistance Levels
That's the big picture context.  For short term trades, let's take a look at the S/R levels for tomorrow Monday.
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The full article covers:
Support & Resistance Levels (charts)
Market Internal Indicators
Market Directions: Short, Intermediate and Long Term
Model Portfolio

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