Pre-market update:

• Asian markets traded in a mixed range from -2.1% up to +1.1%
• European markets are trading 0.6% higherer.
• US futures are trading 0.3% higher ahead of the market open. 
  

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

Technical Outlook (SPX):

• After selling off initially, and even breaking briefly below the 50-day moving average and the 1839 price level, SPX bounced 
• It also managed to recapture SPX 1850 on the bounce which also carried minor support. 
• Volume was average and less than what we saw in the previous two days of selling. 
• The 30-minute chart of SPX has been extremely important of late, and it shows the SPX basing at the low end of the trading range from the last 1 1/2 months. 
• Any bounce that SPX has, needs to ultimately take price above 1873. 
• VIX dropped a great deal back down to 14.89
• Critical support at 1839. If that price level breaks, a much greater downward push should arise. 
• There is no real pipeline of bearish news driving this market lower which is a bit concerning to me. There is no theme to it besides the fact that it is happening. 
• The most important trend-line and level of support for the bulls is the rising trend-line off of the August lows which currently sits at 1784. It wouldn’t surprise me if that is where this market is ultimately going. 
• 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:

• Sold X yesterday at 28 for a 1.0% gain as a day-trade. 
• Will look to add 1-2 new short positions today.
• No current positions in the portfolio. 
• 100% Cash.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: