Pre-market update:

• Asian markets traded 0.6% higher.
• European markets are trading 0.2% higher.
  
• US futures are trading 0.1% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): PMI Services Flash (9:45), Pending Home Sales Index (10), Dallas Fed Maunfacturing Survey (10:30)

Technical Outlook (SPX):

• Sell-off on Friday took price back into the monthly range we had previously been trading in. 
• That results in a head-fake/false breakout from last week, which isn’t all that surprising considering how anemic the price movement and volume was, coming out of that box. 
• Strength/support was found on Friday off of the 10-day, and namely the 20-day moving averages. 
• VIX still remains volatile at 7.2% higher on Friday at 12.69. 
• Concerns continue to mount about the divergences seen in the S&P 500 and the Russell indices. 
• Double bottom in 30-minute chart of SPX still in play here, though extremely choppy. 
• The notion that we could push through 2000 on SPX, is being met with selling jitters. 
• SPX in overbought territory. 
• Volume was weak last week. 
• If the bears are going to take control of the market they need to push price below the trend-line at 1965.
• 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 KATE at $39.76 on Friday for a 4.4% gain. 
• Did not add any new positions on Friday. 
• Will look to add 1-2 new long positions today. 
• Remain long BKD at $35.28, EBAY at 51.75, MS at 32.88, MRO at 40.16, EXPD at 45.69.
• 50% Long / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: