Pre-market update:

• Asian markets traded 0.5% higher.
• European markets are trading 0.4% lower. 
• US futures are trading 0.2% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Chicago Fed National Activity Index (8:30), Redbook (8:55)

Technical Outlook (SPX):

• Yesterday was an extremely tight-ranged day for the SPX and the broader market. 
• A close above 1772 would be key for the SPX, and ideally above 1775. 
• 1740 will continue to be my key support level to watch today. 
• Secondary support will be the rising 20-day moving average as the bulls bought the dip off of that MA last week. 
• Volume was non existent yesterday due to Veterans day and the banks being closed. Today should pick up quite a bit. 
• VIX dropped to 12.53. 
• It is key for the SPX to break to new highs in the next 1-2 days otherwise, Friday’s move becomes more of a dead cat bounce. 
• Going forward the key price level for support that must be held is 1740. No reason to be short until that price level is breached. 
• SPX well off of overbought levels. 
• 30-minute chart of SPX is back to consolidation patterns. 
• Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

• Added two new long positions on Monday. 
• Sold LYV at 17.93 for a 0.8% loss
• Sold JOY at 56.4 for a 1.7% loss. 
• Will look to add 1-2 new positions today as long as SPX can stay above 1740. 
• With earnings in JWN coming up, I don’t expect to hold that stock beyond today. 
• Wait at least an hour after the market opens before considering a new position today. 
• Currently 70% long / 30% cash.  
• Current Longs: ALKS at 35.49, GES at 31.55, CHS at 17.30, JWN at 60.66, MOS at 47.77
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: