Pre-market update:

• Asian markets traded -0.5% lower.
• European markets are trading -0.5% lower.
  
• US futures are trading 0.1% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), PPI-FD (8:30), Redbook (8:55), Treasury International Capital (9am)

Technical Outlook (SPX):

• Yesterday’s price action saw the dip buyers come back in to support the price from falling any more and nearly erasing the day’s losses. 
• However, at the end of the day, price still remains firmly below broken support at 1987. 
• Volume has been solid the last two days, which has been a common theme for the market on days in which the market sells off. 
• 5, 10, and 20 day moving averages are converging, and providing resistance overhead. 
• While SPX hasn’t given up much in gains of late, under the surface, stocks are selling off. Only 34% of stocks are trading above their 40-day moving average which is incredibly low considering just a couple of weeks ago, SPX was hitting new all-time highs. 
• All it takes is one strong day of more than 1% to the downside to really scare traders of this market. 
• 30-minute chart of SPX has yet to improve in the least bit. Still putting in lower-lows and lower-highs. 
• VIX rose by 6% to 14.12.
• September, so far is trading in a very similar pattern to July, except this time around it is an even tighter trading range. 
• SPX quickly approaching oversold conditions, despite no major sell-off. 
• FOMC Statement to come out on Wednesday. 
• 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:

• Sold MSFT yesterday at 46.14 for a 1.4% gain. 
• Sold FB yesterday at 75.09 for a 0.7% loss. 
• Sold SYMC yesterday at 23.96 for a 2.9% loss. 
• Added one additional short position yesterday. 
• Remain long MAS at 23.72.
• Remain short MGM at 23.77.
• Will look to add 1-2 new long position today if the market bounces here – also willing to open 1-2 new short positions should the market continue to decline.
• 10% Long / 20% Short / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: