Pre-market update:

• Asian markets traded 1.2% higher.
• European markets are trading 0.8% higher. 
• US futures are trading 0.3% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Producer Price Index (8:30), Empire State Manufacturing Survey (8:30), EIA Petroleum Status Report (10:30), Beige Book (2)

Technical Outlook (SPX):

• Yesterday’s bounce back in the markets was huge for the bulls. 
• Despite the fact that the SPX broke a key short-term support level, it simply was a huge head fake that trapped bears in their short positions. 
• Now SPX aims for new all-time highs, and if that is broken, the bears have lost any kind of advantage they may have possessed on Monday. 
• Any heavy sell-off at this point needs to take price at least below the rising trend-line off of the October lows – which currently sits at 1815. 
  
• After that key support becomes 1809 which is the point where SPX broke out on 12/18/13. 
• Dip buyers proved that they are looking to buy the dip in 2014 already. 
• SPX also reclaimed the 10 and 20 day moving averages yesterday. 
• VIX dropped hard back to 12.28. 
• No conclusive price patterns in the 30- minute chart of SPX. 
• January is starting off in much the same way as December 2013 did – so keep that in mind. 
• Markets don’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:

• Did not sell any positions yesterday. 
• Added three new positions including ALGN at $58.95. 
• Remain long AIG at 51.54
• I will look to add 1-2 new positions today. 
• Long 40% / Cash 60% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: