Pre-market update:

• Asian markets traded 0.6% lower. 
• European markets are trading 0.9% lower. 
• US futures are trading 0.8% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Consumer Credit (3)

Technical Outlook (SPX):

• SPX bounced nicely off of the rising trend-line off of the November 2012 lows on Friday, however, today’s market weakness puts the SPX at risk of a gap down through the trend-line. 
• Dip buyers will be key to the market not confirming the break of some significant support levels. 
• 50-day moving average being held, but like everything else, is being threatened yet again today. The 10-day moving average continues to offer resistance for the second straight day. 
• Large Bearish wedge has formed as shown below. 
• Friday’s bounce was textbook, and I’m curious to see how the market ultimately performs today in lieu of that. 
• Volume dropped off some on Friday. 
• VIX dropped back down to 16.73. Watch for divergences today as a sign of an intraday bottom. 
• The last five minutes of each trading session in the past 2 weeks has resulted in some sharp spikes both higher and lower depending on the day. Be aware of this. 
• It’s a tough call in this market right now in determining where it wants to go. The SharePlanner Reversal Indicator is playing heavily into my trading strategy, and the signals it is giving off suggests that this market is heading lower in the near future. 
• If a compromise is reached, expect a significant bounce back. 
• Confirmed Head and shoulders pattern on the SPX 30-minute chart still in play. 
• 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:

• One new long position added on Friday. 
• No positions were closed out on Friday. 
• I’m more interested at this point in thinning out my longs rather than adding to them. May also add another short position today. 
• Currently 80% long / 10% short / 10% cash.  
• Current Longs: RDC at 37.17, UHS at 73.85, MPEL at 31.59, CSE at 11.86, ITMN at 15.31, DKS at 53.87, GNW at 12.82.
• Current Shorts: STT at 65.83. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: