Pre-market update:

• Asian markets traded 0.4% lower.
• European markets are trading 1.7% lower.
  
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), FHFA House Price Index (9), PMI Manufacturing Index Flash (9:45), Richmond Fed Manufacturing Index (10)

Technical Outlook (SPX):

• SPX had a heavy sell-off yesterday that resulted in a pullback below the break out level from last week and back into the consolidation zone. 
• Crossed below the 20 & 10-day moving averages. 
• Unlike other significant sell-offs, there wasn’t a consensus on what was the main driver pushing the market lower. Instead the market appeared to sell-off “just because”. 
• A break below 1978 is really the place where it becomes to necessary to switch the bias to the short side. 
• At this point the SPX is floating in “no-man’s land” where it has been stuck this entire month. 
• 13.1% pop in VIX taking it back up to 13.69. 
• Uptrend in SPX 30-minute chart is over. and needs to hold 1978 as well going forward. 
• 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:

• Added one new long position yesterday. 
• Closed out LGF yesterday at 32.97 for a 2.28% loss. 
• Will look to add 1-2 new long position today if this market manages to bounce off of the morning lows.
• 30% Long / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: