Pre-market update:

• Asian markets traded 0.8% lower.
• European markets are trading 1.2% higher. 
• US futures are trading 0.6% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Empire State Manufacturing Survey (8:30), Productivity and Costs (8:30), PMI Manufacturing Index Flash (8:58), Treasury International Capital (9), Industrial Production (9:15)

Technical Outlook (SPX):

• Despite the obvious double top in the SPX, recent price action resembles and feels more like consolidation than an actual sell-off over the past month. 
• Even without the lack of any major downward movement in the SPX, it is down 9 out of the past 11 trading sessions. 
• If today’s early morning bounce holds into today’s close, we could be seeing the end of the current ‘sell-off’ and for a possible year-end rally. 
• Some resistance overhead for the bulls between 1800 and 1808. 
• Volume on the SPY has seen declining levels each of the past three days. 
• We are firmly in oversold territory. 
• Consolidation near the lows on the SPX 30-minute chart. 
• Nice series of higher-highs and higher-lows on the VIX bringing it to 15.74. 
• The 1777-1779 range was broken Thursday and that now establishes a new lower low in the SPX daily chart. 
• 1772 now becomes a key price level support for the SPX to hold on to going forward. 
• 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 JAH at 57.32 for a 1.5% gain on Friday. 
• Well positioned to benefit from today’s gap open with five new positions added over the last two trading sessions. 
• Will look to add 1-2 new positions to the long side today off the market bounce. 
• Long 50% / Cash 50% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: