Pre-market update:

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

Economic reports due out (all times are eastern): Jobless Claims (8:30), Consumer Price Index (8:30), Empire State Manufacturing Survey (8:30), Treasury International Capital (9), Industrial Production (9:15), Philadelphia Fed Survey (10), Housing Market Index (10)

Technical Outlook (SPX):

• Follow through yesterday on Tuesday’s 1900 rejection. 
• Now we have an evening star pattern (bearish) that is in place. 
• I added some additional short exposure yesterday as a hedge against some of the weakness we have been seeing. 
• The big question is whether the pre-market weakness turns into another episode of what we saw on 4/4. 
• For me personally, I suspect this market will try to suck in as many shorts as possible early on this morning and then the dip buyers will rip the market higher. I’ve seen it happen time and again this year, particularly in the last two months. 
• Interestingly enough, SPX is going to be testing 1883 this morning right out of the gate which could be a level of support for the bulls. 
• VIX barely moved higher despite yesterday’s market weakness. 
• Downtrend in tact on SPX 30 minute chart with lower-highs and lower-lows. 
• Major milestones like 1900 can often lead to profit-taking as it represents a predefined/psychological level where investors decide to book their gains. 
• The bears, if they want to stay relevant here, needs to push price back below 1883 like they did back in April. 
• Russell took a pummeling seeing a much larger sell-off than what was had in any of the other indices. 
• Small caps continue to be the market’s weak spot. 
• 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 Opinions & Trades:

• Added one new long position yesterday. 
• Added one new short position yesterday. 
• Closed out IDTI at 12.15 for a 3.1% loss. 
• Remain short TEL at 58.18.
• Remain long BHI at 70.04, GPK at 10.57, KORS at 94.43.
• Short 20% / 40% Long / 40% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: