Pre-market update:

• Asian markets traded 0.6% higher.
• European markets are flat. 
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• Strong initial rallies after hard pullbacks in the market tend to see many more days of additional rallying thereafter. 
• The trend-line off of the October lows, looks more like the trend has flattened out some rather than reversing course .
• Potential on the 30- minute chart of the SPX that we are forming a head and shoulders pattern. A hard move below 1779 would confirm this. 
• The previous mentioned level now becomes a must hold level for the bulls going forward.
• I see very little reason or edge to be short in this market right now. 
• Friday’s action saw price reclaim the 10 and 20-day moving averages. 
• Last week marked the first time in 9 weeks that the SPX finished lower on the week. 
• Nice bullish kicker candle formation completed Friday which is bullish for the markets. 
• Hard drop in the VIX down to 13.79. 
• 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:

• Sold MPEL on Friday at 36.80 for a 3.1% gain. 
• Added on additional long position. 
• May add 1-2 new positions today. 
• Current Longs: JAH at 56.50, ADSK at 45.75, LVS at 71.92, CBG at 24.64, CX at 10.95, BIDU 169.60.
• Long 70% / Cash 30% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: