Pre-market update:

• Asian markets traded 1.3% lower.
• European markets are trading 1.1% lower.
  
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC Goldman Store Sales (7:45), Redbook (8:55), S&P Case Shiller HPI (9), Consumer Confidence (10)

Technical Outlook (SPX):

• SPX continued its climb but experienced another sell-off in the final minutes of trading that muted much of the day’s gains. This is the third straight day that it has happened. 
• Gap down this morning to start things off – there is a good chance that dip buyers will come in early and buy this dip off of the morning lows. 
• On the 30-minute chart, the trend higher has dramatically flattened out but still maintaining an upward bias. 
• Volume continues to come in extremely light, and that is common for trading at the end of the year. 
• VIX actually rose yesterday 3.9% to 15.06. 
• T2108 (% of stocks trading above the 40-day moving average) dropped 1.6% down to 52.89. This indicator has been significantly lagging the overall market. 
• Significant price-level support for the market right now is 2074. 
• Watch the 5-day moving average as a break below could indicate a potential change in direction for the market. 
• SPX is closed on Thursday for New Year’s Day. 
• We are currently in the period that is considered to be the historic “Santa Rally” – be careful with any attempts to short this market. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Did not add any new positions to the portfolio yesterday. 
• Closed out BIDU at 229.68 for a 1.9% loss.
• Will consider adding 1-2 new positions today. 
• Remain long UPRO at 117.28, FB at 77.98, MXIM at 31.45, CMG at 665.48, AAL at 51.26.
• 50% long / 50% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: