Pre-market update:

• Asian markets traded 0.4% higher. 
• European markets are trading -0.2% lower. 
• US futures are trading -0.2% lower. 
  

Economic reports due out (all times are eastern): Atlanta Fed Business Inflation Expectations (10)

Technical Outlook (SPX):

• SPX starting to look unsteady at its highs, and ready to consolidate pullback some at this point. 
• A continued push higher as aggressive as we have seen of late is unlikely and unrealistic in terms of expectations. 
• First level of support for the SPX to hold will be 1709. After that, there is little in the way of support above 1700. 
• At this point, one has to consider the ‘easy money’ as having been made until we get some kind of minor pullback, even if it is only 10-20 points in total. It won’t get easier than the opportunity we’ve had from late August until now. 
• So be careful adding additional exposure to your portfolio, or at the very least, don’t go chasing profits. 
• Continue to watch the 10-day moving average, and a break of which that might spur on a minor correction. 
• Volume still relatively higher yesterday. 
• A bearish divergence in the VIX as we are no where near recent lows despite hitting all-time highs. We are currently at 12.97. Back on 8/3 we were at 11.83. 
• I am continuing to trade to the long side, and for the foreseeable future. 
• SPX back firmly in overbought status short-term. 
• 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 add any new positions yesterday. 
• Did not close any positions yesterday. 
• Tightened the stops on a majority of my positions to lock in profits. 
• Currently 60% long / 10% short / 40% cash.  
• Current Longs: SLB at 82.34, OSK at 46.91, EXXI at 27.54, FTNT at 20.63, BIDU at $143.15
• I’ll look to add one additional position to the long side today if conditions permit. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: