Pre-market update:

• Asian markets traded 0.7% higher.  
• European markets are trading 2.4% lower.
• US futures are trading 0.9% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Personal Income and Outlays (8:30), PMI Manufacturing Index (8:58), ISM Manufacturing Index (10), Construction Spending (10)

Technical Outlook (SPX):

• Look for a test of the 10-day moving average, that has acted as support of late, to be made immediately at the market open. 
• SPX continues to experience heavy gap downs including those on 2/13, 2/19 and 2/27. Two out of the three gap downs finished higher on the day. 
• Of note, is the fact that we will be losing support (the 1850 breakout point) at the open today. 
• The actions taken by Russia in the country of Ukraine are primary drivers of today’s market weakness. Watch for whether its activities spill over into other eastern European countries as well. 
• Also watch support at 1825 today on SPX. 
• 1840 on the 30-minute chart for SPX represents a strong support level. 
• Volume was strong on Friday, likely due to end of month trading activities. 
• The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows. 
• 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:

• Did not add any new positions on Friday to the portfolio. 
• Closed out PHM at 20.98 for a 1.8% gain. 
• Remain long GLW at 19.16, DOW at 47.46, PHM at 20.62, JDSU at 13.76, PH at 119.24. 
• Will wait this market out today to see where we settle in at, and whether the dip-buyers will buy the sell-off. 
• Long 60% / Cash 40% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: