Pre-market update:

• Asian markets traded in a -0.1% lower.
• European markets are trading 0.6% lower.
• US futures are trading 0.4% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): PMI Services Flash (9:45), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• Heavy price swings yesterday that saw price settle in at the mid-point of the SPX intraday price range. 
• 1883 on SPX has acted yet again as strong resistance. Price has been rejected for the second time in three days. 
• The bears must take advantage of this and drive the SPX significantly lower. Staying near the all-time highs like it is now, increases the chances of an 1883 break to the upside. 
• Interesting, and very similar price patterns that culminated in the same exact candle formation on 1/21 and 3/7 that led to immediate sell-offs. 
• Converging moving averages with the 10,20 & 50 between 1855 and 1861. It should tighten even more in the coming days. 
• SPX in overbought territory for the first time since 4/4. 
• SPY volume well below average for the sixth straight day. 
• Potential Double top is forming on SPX 30-minute chart. Confirmation is at 1873. 
• VIX unable to move lower over the the past 5 days. 
• 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:

• Added one new short position yesterday. 
• Did not close out any positions yesterday. 
• Will look to add 1-2 new positions today.
• Remain long JOY at 61.31. 
• Remain short HPQ at 31.99, BAC at 16.08, LVLT at 37.95. 
• Long 10% / Short 40% / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: