Pre-market update:

• Asian markets traded 1.5% lower. 
• European markets are trading 1.5% lower.
• US futures are trading 0.5% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): PPI-FD (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• SPX 1873 failed yesterday after testing it at the market open, which led to a massive sell-off across the board. 
• 1839 represented critical support for SPX and the place where the SPX previously bounced at. But price cut right through this support level. 
• Also, the 50-day moving average was broken with little fight. 
• Minor support at 1814 today followed by major support at 1788 off of the rising trend-line starting from the August lows. 
• Volume was very strong yesterday, and in line with the heavy volume seen in previous sell-offs. 
• SPX 30 minute chart shows the beginning of a breakdown in place. 
• The most important trend-line and level of support for the bulls is the rising trend-line off of the August lows which currently sits at 1788. It wouldn’t surprise me if that is where this market is ultimately going. 
• The Market doesn’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:

• Added three new short positions yesterday.
• Did not close out any trades yesterday. 
• Will look to add 1-2 new short positions today.
• Remain short MTW at 30.66, DOW at 48.30, BAC at 16.21.
• Short 30% / 70% Cash.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: