Pre-market update:

• Asian markets traded 0.2% higher. 
• European markets are trading 0.6% lower. 
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Housing Starts (8:30), Jobless Claims (8:30), Industrial Production (9:15), Philadelphia Fed Survey (10), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11)

Technical Outlook (SPX):

• Huge rally in the markets yesterday pushing price through resistance and poised to test all-time highs. 
• I expect the market to rally hard much in a similar fashion to what we saw off of the August lows and June lows. 
• Very little in the way of head-winds for the market as Syria has left the spot-light, shut-downs, debt-ceiling are over with for now, and the most dovish Fed chairman poised to take the helm. 
• Volume was well above average yesterday. 
• The VIX dropped a resounding 21% all the way down to 14.7. 
• SPX is firmly entrenched in overbought territory. 
• Bulls need to continue to hold the rising trend-line off fo the November 2012 lows which currently rests at 1693. 
• The bearish wedge formed on the SPX since the May highs is concerning to me and resistance there stands at 1735 and moving slightly higher each day. 
• A move below 1627 would mark a new lower-low in the market and confirm a downtrend for the first time since the November 2012 lows were established. 
• 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:

• Did not close out any positions yesterday. 
• Added two new long positions yesterday. 
• I am primarily focused on trading to the long side going forward. 
• Currently 80% long / 20% cash.  
• Current Longs: GNW 12.82, ACAS at 13.67, LYV at 18.80, CMI at 133.25, NWL at 27.84, FCX at 33.80. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: