Pre-market update:

• Asian markets traded 0.2% lower.
• European markets are trading 0.7% higher.
• US futures are trading 0.2% higher ahead of the market open. 
  

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

Technical Outlook (SPX):

• Huge pop higher yesterday marking the ninth time in the last eleven trading sessions SPX has finished in the green. 
• Strong rallies into a mature, short-term rally are often signals of a short-term top being near by.
• Volume was much stronger than what we have seen lately, which is a welcomed development for the bulls. 
• The rally off of the 4/14 lows has support at 1897. 
• VIX dropped an additional 3.3% to 11.68.
• 30 minute chart of SPX is heavily overbought. 
• Employment will likely weigh on the market today, and with recent and significant news, when the news is bad, the bulls quickly buy the dip. Strong likelihood the same happens again here. 
• With the Russell breaking out of its inverse head and shoulders pattern, there is a good chance that the Russell will be able to provide additional buying interest in the broader market. 
• The dip buyers continues to reverse intraday weakness rather aggressively. 
• As it currently stands, the bears are not showing any true ability to drive this market lower.
• The only moving average that has shown any significant measure of support recently has been the 50-day moving average. That is the only one I would stay focused on at this point. 
• There does remain a significant gap up to fill from 5/27 on the SPY chart. 
• 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 Opinions & Trades:

• Closed out BBY at 28.62 for a 4.6% gain. 
• Closed out HOT at 80.08 for a 1.0% gain. 
• Added one new long position yesterday. 
• I will look to add 1-2 new long positions today. 
• Remain long AKAM at 54.52, HAL at 63.07, WDC at 87.93, STT at 65.75, HPQ at 33.84, IR at 60.11.
• 70% Long / 30% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: