Pre-market update:

• Asian markets traded 0.4% higher.
• European markets are trading 0.1% lower.
  
• US futures are trading 0.3% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), New Home Sales (10), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

• SPX sold off for the third consecutive day. A fourth day in a row would be considered a rarity in this market. 
• The last time we saw four straight days of selling on SPX was in December of 2013. 
• Key level to watch on SPX today is 1978. If that price level breaks, the market will create a lower-low which would be very bearish. 
• Slight gap up heading into the market open today – of which most of them are filled intraday. 
• The rally from last week has been completely erased. 
• In essence the market continues to remain stuck in a month long holding pattern. 
• SPY volume has been strong and above average for the past two weeks. 
• 50-day moving average could be tested in the coming days at 1976.
• VIX popped another 9.1% to 14.93 yesterday. 
• At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
• 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 Trades:

• Did not close out any positions yesterday. 
• Did not add any positions yesterday. 
• Will look to add 1-2 new long position today if this market manages to bounce off of the morning lows. If it breaks below 1978, I’ll look to start shorting the market. 
• 30% Long / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: