Pre-market update:

• Asian markets traded 0.8% higher.
• European markets are trading 2.1% higher.
  
• US futures are trading 0.5% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Chicago Fed National Activity (8:30), PMI Services Flash (9:45), Dallas Fed Manufacturing Survey (10:30)

Technical Outlook (SPX):

• Expect a slow market this week where volume will become increasingly lighter than the day prior as we get close to Thanksgiving day. 
• Stock market is closed on Thursday, and open until 1pm eastern on Friday. 
• On Friday, SPX broke out of the 3-day consolidation period and closed at new all-time highs. 
• What concerns me most about Friday’s market action is how it gave up much of the day’s gains and finished below the day’s opening price. 
• VIX finished 5% lower at 13.03. 
• Volume was strong on Friday but primarily due to options expiration day. 
• Thanksgiving week tends to be bullish and expect this week to be the same. However, I do not expect any major price movements out of the indices – but that doesn’t mean that there won’t be significant moves made on individual stocks. 
• The % of stocks trading above the 40-day moving average continues to increase which means there isn’t any deterioration occurring underneath the surface with stocks. 
• As a result remaining long on this market is the only logical play at this time. Shorting stocks would undoubtedly be a foolish gesture. 
• SPX 30-minute chart continues to exhibit higher-highs and higher-lows. No concerns with the price action there. 
• If SPX breaks 2030 it would represent a break of key support and likely more weakness would follow. 
• 5-day and 10-day moving average are converging which makes a break of both in one day much more possible and more significant too. 
• Historically trend-lines that are steeper/greater than 45 degrees are nearly impossible to maintain over an extended period of time. 
• 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:

• Closed out HUN on Friday at $26.69 for a 7.9% gain. 
• Closed out INTC on Friday at $35.88 for a 5.4% gain. 
• Closed out UA on Friday at $69.15 for a 0.8% gain. 
• Added one new long position on Friday. 
• Will consider adding 1-2 new long positions today. 
• Remain long BA at 129.51, KBH at 17.27, SBUX at 78.47. 
• 40% long / 60% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: