Pre-market update:

• Asian markets traded 0.2% higher. 
• European markets are trading 0.3% lower.
  
• US futures are trading 0.1% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Employment Situation (8:30), Yellen Speaks (10:15), Consumer Credit (3)

Technical Outlook (SPX):

• SPX added on another 0.4% yesterday as the rally off of the 10/15 bottom continues its incredible ascent. 
• Whether the rally continues for the foreseeable future or not, one thing remains, and that is it cannot continue for much longer, to rally at the gravity defying slope it has done for over three weeks now. 
• As a result, consolidation will have to kick in, in order that the trend-line may flatten out some. 
• Historically trend-lines that are steeper/greater than 45 degrees are nearly impossible to maintain over an extended period of time. 
• Volume remains at average to a bit light of late. 
• VIX dropped 3.5% to 13.67. 
• SPX 30 minute chart has already started to flatten out the trend line a bit. 
• Still a very much “Buy-the-Dip” market. 
• One of the concerns for me in this rally off of the 10/15 lows is the lack of any higher-low – it has been ‘straight-up’ the entire time. 
• The 5-day moving average continues to be a strong reading of where this market is heading. SPX tested it yesterday and held the MA into the close. 
• SPX is no doubt overbought at this juncture of the rally, but those types of conditions can go on far longer than one would ever think. 
• Market internal indicators all continue to look fairly healthy at this stage of the game. 
• 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:

• Did not close out any positions yesterday. 
• Added one additional long position yesterday. 
• Will consider adding 1-2 new long positions today.
• Remain long INFY at 62.56, MS at 34.40, LUV at 11.3, PHM at 19.35, CAR at $56.57, XLNX at $44.01.
• 70% long / 30% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: