Pre-market update:

• Asian markets traded in a wide range between -0.9% and +0.9%
• European markets are trading 0.3% lower.
  
• US futures are trading 0.2% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), Wholesale Trade (10)

Technical Outlook (SPX):

• Momentum on SPX finally showed signs of waning yesterday. 
• Strong possibility with weakness today, that a bearish short-term pattern called the “Evening-Star” emerges. 
• The 10-day moving average hasn’t been breached since 5/21, which was when the rally started. If the 10-day MA breaks, we could see additional weakness come about. 
• A sell-off in the short-term doesn’t threaten the longer-term ability of this market to continue rallying as long as SPX doesn’t lose the 1900 level which is psychologically significant as well as representing the trend-line that formed off of the April lows. 
• Volume on the SPY has tapered the last two days which could be a sign of waning momentum. 
• VIX popped 4% yesterday back up to 11.15.
• To say the least, I am very cautious towards this market in the very short-term. I think the longer-term pattern still pushes higher, but right now we need to see the market cool off some first. 
• If/when the profit taking occurs, I wouldn’t let it alarm you, even if it results in a +20 point pullback on SPX. 
• Profit taking at this point isn’t all that bad. In fact for me, it is a welcomed development. Ideal trade setups without high levels of risk are hard to come by. This market needs to reset some. 
• 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:

• Closed out WDC at 91.40 yesterday for a 4.0% gain. 
• Added one additional position yesterday. 
• I will look to add 1-2 new long positions today. 
• Remain long AKAM at 54.52, HAL at 63.07, STT at 65.75, IR at 60.11
• 50% Long / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: