Pre-market update:

• Asian markets traded 1.4% lower.
• European markets are trading 0.7% higher.
  
• US futures are trading 0.9 lower ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Producer Price Index (8:30), Retail Sales (8:30), Empire State Manufacturing Survey (8:30), Atlanta Fed Business Inflation  Expectations (10), Business Inventories (10), Beige Book (2)

Technical Outlook (SPX):

• There’s a large trading area of support between 1859 and 1884 that could offer some support for this market today. 
• Futures are setting up for a significant gap lower. 
• Ebola fears as well is gripping this market and a major player in this sell-off. 
• Much of the selling we have seen lately has not been a result of large gap downs like the one that is seen in the pre-market today. Gaps ups have all been faded. The possibility exists the same could happen with this gap down. 
• Volume continues to rapidly increase each day – well above the average for all the indices. 
• SPX 30-minute chart showed the potential for a double bottom to be in place yesterday, but instead will break that pattern at the open today and create a new lower-low for SPX.
• Bullish divergences were abounding yesterday with VIX finishing 7.5% lower to 22.79 and T2108 bouncing 28% higher to 17.22. 
• SPX is so oversold that a solid rally off of these lows makes sense – but only expect it to last 2-3 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 Trades:

• Did not close any existing positions yesterday.
• Added one new position yesterday.  
• Will consider adding 1-2 new positions today. 
• Remain long SH at 23.38
• 20% long / 80% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: