Pre-market update:

• Asian markets traded 0.4% 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): ICSC-Goldman Store Sales (7:45), Redbook (8:55), Wholesale Trade (10)

Technical Outlook (SPX):

• Yesterday closed out the third doji candles in the last four trading sessions, easily creating speculation that the market may be distributing here. 
• The 10-day moving average that SPX has been hugging during the duration of the market rally is in play today at 1866. This needs to be broken before there is any real reason to get further bullish on this market. 
• A scenario either bullish or bearish could emerge where price action engulfs the entire four previous days of price action. 
• Volume was light yesterday. 
• While VIX gave up all of its gains on the day as the SPX saw dip buyers push the market significantly off of its lows of the day. 
• Breaking the 10-day moving average is the first step the bears must take in changing the tide of this market. Anything else is just noise. 
• A break below 1835 – 1840 would represent a major milestone for the bears. 
• I am cautious towards this market as recent history suggests 140+ point rallies is on the extreme high end of what a market can do in under a month’s time. 
• 30-minute SPX chart is sloppy and shows more consolidation over the past four days than anything else. 
• On the SPY you have a huge gap now that needs to be filled at some point from 3/4 – there is also the gap up from 2/7 that has gone unfilled as well. 
• The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows. 
• 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:

• No new trades yesterday. 
• Did not close out any new trades yesterday. 
• Remain long CTSH at 52.72, MAN at 78.29. 
• Remain short JCI at 48.90, F at 15.56.
• Will look to add 1-2 new additional position today. 
• Long 20% / Short 20% / Cash 60% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: