Pre-market update:

• Asian markets traded in a range between -0.7% and +1.01%.
• European markets are trading 0.4% lower.
• US futures are trading flat ahead of the market open. 
  

Economic reports due out (all times are eastern): GDP (8:30), Jobless Claims (8:30), Corporate Profits (8:30), Pending Home Sales (10), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

• Yesterday marked the 7th straight day that SPX tested 1873 and failed to hold the level into the close. Instead a 23 point sell off from the highs of the day ensued. 
• Today will likely see key support at 1850 tested. If that price level breaks the next key support level to watch will be 1839, which breaking that would mark a short-term lower-low for the S&P 500. 
• Volume was average yesterday but the down days continues to see much greater market participation than the up-days. 
• As has been the case all month, SPX continues to trade in consolidation area with no legitimate market direction. 
• Russell has formed a near-perfect double top pattern and the Nasdaq is distributing heavily already. 
• SPX continues to flucuate up and down around the 10-day and 20-day converged moving averages. 
• Until 1873 is broken and held into the close, there is little reason to get long on this market. 
• The rising trend-line off of the February lows was breached with yesterday’s sell-off. 
• The 10-day moving average cross below the 20-day moving average – something that hasn’t been seen since the pullback that started on 1/23. 
• 30- minute chart on SPX is still very choppy but still sports a double top pattern and within second top, a head and shoulders pattern. 
• March has been stuck in a relatively tight trading range of about 49 points. At this juncture, with all the back and forth that I’ve seen, it needs to do what it can to separate from the pack. 
• Consolidation of the market of late is best seen through the weekly chart of SPX
• 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:

• Added one additional short position yesterday. 
• Did not close out any positions yesterday. 
• Will look to add 1-2 new additional position today. 
• Remain short short MU from 23.78, ACAS at 14.64, IR at 58.04. 
• Short 40% / Cash 60% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: