Pre-market update:

• Asian markets traded 0.4% lower.
• European markets traded 0.9% lower. 
• US futures are trading 0.3% lower. 

Economic reports due out (all times are eastern): Durable Goods Orders (8:30), Jobless Claims (8:30), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11), 

Technical Outlook (SPX):

• Cup and handle pattern formed overnight and heading into the market open on the 5-minute chart of S&P futures. 
• Yesterday was by far the most selling in exactly one month in the markets. 
• SPX broke the rising trend-line off of the 6/24 lows yesterday. This isn’t a major concern as I didn’t suspect that the steepness of such a trend-line could hold for much longer. 
• Worth noting is that the 10-day moving average held its own and should be closely watched today. 
• If we see any significant amount of selling today, you will want to watch the 1671-2 level as a significant short-term support level. Break below it, and you likely have a much heavier sell-off at hand. 
• I think it is safe to say that 1700 is a real source of resistance for this market at this po int. 
• Pay no attention right now that the market is over-extended. Such conditions rarely matters with the Fed’s involvement in the markets. 
• VIX is back into the 13′s. 
• This uptrend looks nearly the same as the one we saw on 4/19 and lasted until 5/19. I’m curious if it will lead to a similar extended pullback as a result. 
• Markets don’t care about the economy. 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:

• Closed CL at 58.47 for a 0.6% loss. They report earnings today. 
• Added RCI at 40.65
• Current Longs: SOHU at 67.91, WU at 17.45, MENT at 20.55, HRB at 30.19, SJM at 104.63, BDX at 99.98, GOOG at 887.47
• May look to take gains in stocks that are stagnant and replace them with better setups today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: