Pre-market update:

• Asian markets traded 2.2% higher.
• European markets are trading 0.3% higher.
  
• US futures are trading flat ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Consumer Price Index (8:30), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

• The biggest day of the bounce occurred yesterday where there was truly a massive squeeze of the shorts. 
• In the process, SPX recaptured the 20 and 200 day moving averages. 
• The bounce has represented a 61.8% retracement from the September highs. 
• SPX managed to push through 1920 which I thought would be extremely difficult. 
• Europe buying Italian bonds led to the massive rally. 
• VIX dropped another 13.5% down to 16.07. Wednesday it was above 31 at one point. A huge shift. 
• As the bounce continues to proceed higher and higher, it puts the odds of the bears re-claiming this market lower and lower. 
• It would not surprise me one bit if we saw some consolidation in the current bounce. Holding the recent gains or only allowing for a minimal pullback is absolutely key here. 
• Careful with trying to jump in front of this market to the short side. The market can bounce much higher than one would ever think possible. 
• SPX 30 minute chart still shows consecutive higher-highs and higher-lows.  
• 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 close out any positions yesterday. 
• Added one new long positions to the portfolio yesterday. 
• Will consider adding 1-2 new positions today. 
• Remain long ROST at 76.76, PIR at 12.33, RAX at 35.18.
• 40% long / 60% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: