Pre-market update:

• Asian markets traded 1.2% higher.
• European markets are 0.5% higher. 
• US futures are trading 0.5% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), EIA Petroleum Status Report (10:30), FOMC Statement (2)

Technical Outlook (SPX):

• Yesterday was a much needed bounce for the bulls and pulling price off of the critical 1772 support level. 
• Futures are strong heading into the open due to the hike in Turkish interest rates. 
• But no matter how strong the gains are heading into the FOMC statement they can get wiped out if the market doesn’t like what’s in the statement. 
• Previous FOMC statement marked the end of a quasi Sell-off in December and after testing the 50-day moving average pushed nearly 30 points higher on the SPX in one day. 
• Like the last FOMC statement, that first move is always a fake move. Usually there are 2-3 significant moves before the market finds its footing once the FOMC statement is released. 
• Even in dead-cat bounce scenarios there are usually 2-3 days of positive momentum before the sell-off continues. Keep that in mind if you are looking to remain bearish on the market. 
• First time since 12/16 that we have been oversold – which was right before the market popped off of the FOMC statement then. 
• A multi-day bounce could easily take the SPX back up to 1809 without much resistance. 
• VIX dropped 9.3% down to 15.80.
• Over the last two months – you have a beautiful double top that has formed. 
• Until 1772 is broken there is not a significant lower-lower put in place for SPX.
• January, which is often used as a barometer for the rest of the year, in terms of sentiment, remains firmly in the red for the month. 
• 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 today. 
• I will remain on the sidelines in terms of new trades today with the FOMC statement coming out at 2pm eastern. 
• Long 60% / Cash 40% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: