Pre-market update (updated 9am eastern):

• European markets are trading 0.4% higher.
• Asian markets traded -0.8% lower.
• US futures are moderately higher ahead of the bell. 

Economic reports due out (all times are eastern): Employment Situation (8:30am), Consumer Credit (3pm)

Technical Outlook (SPX):

• We bounced right off of the 50-day moving average yesterday despite dipping below it early on. 
• The last five days of trading has been near identical to the price pattern from 4/15-4/19. If this holds up, we could be primed for a massive push higher like what we saw after the 4/19 bounce. 
• If the lows from yesterday holds, the trend-line off of the November lows that we had been working on, has to be redrawn. 
• Volume continues to pick up in this market, and particularly yesterday. 
• No matter what, the lows from yesterday must be held. 
• The gap higher ahead of the bell, is one of  those that could result in the SPX finishing 20-25 points higher due to the heavy oversold conditions that we are currently in.
• These conditions are ripe for a melt up today as bears try to figure out how to cover their positions this morning. 
• This is why trading short on more than just a day-trading basis is very difficult, because th squeeze that is manufactured on a near automatic basis makes the risk/reward very uninviting. 
• Key support rests at 1601. 
• This pullback has been much more significant than anything else we have seen of late: first time we’ve seen a pullback in excess of 4% since October/November. 
• 30-minute chart shows a perpetual sell-off marked by lower-lows and lower-highs. The key is to get back above 1646 for a higher-high.
• VIX currently at 16.60.
• We’ve seen three pullbacks besides the current one since the November lows were established. All three had a moment where key support was broken, only for the SPX to bounce each time the following day and resume the upward climb. 
• Markets don’t care about the economy. 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:

• No new trades added yesterday. 
• May look to add a new position or two if the market can show me a decisive bounce today. 
• Long HLIT at 6.08, HUM at $80.60, AMZN at $267.21, CF at $191.35, APA at $84.95, KSS at $51.83, SLW at $24.29
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: