Pre-market update:

• Asian markets traded 0.8% lower.
• European markets are trading 0.5% higher.
  
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): None. 

Technical Outlook (SPX):

• Should be a low volume day on the market with banks and bond markets closed. 
• Friday saw another major sell-off with SPX finishing the day right at support from the August lows and the 200-day moving average. 
• VIX saw a rare move (at least for these days) above 20, closing the day at 21.08.
• SPX futures nearly 20 points off of the overnight lows. 
• Expect the 200-day moving average to be a real battle ground for the indices today, especially if the volume is light today. A lot of people will be using this as the launch point of a market dead cat bounce today. 
• Bears are deeply in need of follow through today, just for the sake of showing that recent weakness isn’t a matter of just bouncing again without really selling off in a significant manner. 
• While there are many factors weighing down this market, we haven’t see fear really grab hold of it yet. 
• If we see another sell-off today, look for support in the 1870’s on SPX. 
• 1921 on SPX will represent overhead resistance. 
• 30-minute chart on SPX has consecutive lower-lows and higher-lows in place. 
• Also the 200-day moving average could come in to play to day – SPX has not traded below in 477 days. 
• 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:

• No new positions added on Friday. 
• No new positions closed out on Friday. 
• Let current positions do their work. 
• Will consider adding 1-2 new positions today. 
• Remain long CMG from $668.00, SH at 23.38
• Remain short BKD at 32.61, ORCL at 38.30, EMC at 28.35, GPK at 11.94.
• 10% long / 50% short / 40% cash.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: