Pre-market update:

• Asian markets traded -1.2% lower.
• European markets are -1.3% lower. 
• US futures are trading -0.6% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• Second consecutive gap down today. 
• SPX closed on the rising trend-line off of the October lows. But today’s gap down will take us below it. 
• The last month’s 27 point trading range will be broken and we’ll breakout of the consolidation that we’ve been stuck in. 
• Watch the price support at 1809. 
• Bulls will need to do everything it can to close above 1822 today on the SPX. 
• Volume the same as what we’ve seen of late. 
• VIX spiking into the 15’s today. 
• Watch the 50-day moving average at 1813. Last time it was tested, resulted in a significant bounce for the SPX. 
• January, which is often used as a barometer for the rest of the year, in terms of sentiment, remains in the red for the month. 
• Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

• Sold SFUN at 87.52 for a 1.6% loss.
• Sold CNX at 38.04 for a 2.3% loss.
• Sold MEOH at $58.06 for a 3.4% loss.
• Sold IPG at $17.35 for a 2% loss.  
• Added one new long position. 
• Remain long BRO at 32.06, KKR at 25.94
• Based on market action, I will look to add 1-2 new positions today. 
• Long 30% / Cash 70% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: