Pre-market update:

• Asian markets traded 1.1% lower.
• European markets are trading 1.4% lower.
  
• US futures are trading 1.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Retail Sales (8:30), Import and Export Prices (8:30), Business Inventories (10), EIA petroleum Status Report (10:30), Beige Book (2)

Technical Outlook (SPX):

• Wild day of trading in the market yesterday that saw more than 26 points on SPX get sold off, to finish the day in the red. 
• A break below 1992 would create a new lower-low for the market and likely make a push to challenge the December lows. 
• SPX poised to open the day below 2000. 
• Volume was very strong with yesterday’s selling. 
• Crude continues to slide, despite yesterday’s modest rally. 
• VIX rose 4.9% to 20.56 yesterday. 
• SPX 30 minute chart is looking to confirm a dilapidated head and shoulders pattern that can also be seen on the daily chart as well. 
• Be aware, that even in the most bearish of trading environments, the Fed or ECB or any centralized bank manages to say or do something that sparks an end to the selling. Always be prepared and aggressively book gains on short positions. 
• By breaking the 1/7 lows, SPX would create a lower-low and lower-high. 
• 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:

• Covered NTAP yesterday at 39.34 for a 1.1% gain. 
• Sold CIEN at 19.18 yesterday at 19.18 for a 1.3% loss. 
• Sold MAR yesterday at 77.59 for a 2.3% loss. 
• Added two new short positions yesterday. 
• Will consider adding 1-2 new positions today. 
• 30% Short / 70% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: