Pre-market update:

• Asian markets traded 1.6% higher. 
• European markets are trading 0.5% higher. 
• US futures are trading 0.2% higher. 

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Retail Sales (8:30), Import and Export Prices (8:30), Redbook (8:55), Business Inventories (10) 

Technical Outlook (SPX):

• The SPX continues to go according to the playbook from 3/6-4/22 nearly perfectly. Especially with the break in support yesterday, the SPX did the same thing back on 4/18 before going on a major rally to new highs. 
• There does remain some concern about the head and shoulders pattern that has formed on the 30-minute SPX chart. So far it hasn’t confirmed, but darn close to it. 
• The behavior of the last four market sessions has been to drive sharply lower in the first hour of trading, bounce back and make it look like SPX will rally into the green, only to sell off 1/2 of what it did before and just settle there the rest of the day. 
• Volume still on the light side. 
• Consider this market to be consolidating until we can take out and close above the 1709 highs. 
• The days in which we’ve seen selling this month (5 in total) has been very light. More like a lack of buying interest than a true desire to push the market’s lower and liquidate positions. 
• 1676 will continue to be the bigger-picture support level. Break and close below it, and you have a new lower-low in this market. 
• Well off of overbought levels. 
• VIX diverged lower yesterday down to 12.81 and should be a sign of concern for bears. 
• Shooting stars on the VIX indicator has recently been a great indicator of a potential rally in the coming days. We saw that occur on Wednesday. 
• There is little, and I mean almost no reason to be short this market right now. None. Not with the Fed’s policy or until that changes. 
• I remain a buyer in this market. The opportunities to swing short are far too unpredictable, choosing to focus on the long side is the best way to manage risk and maximize profits at this juncture. 
• Markets don’t care about the economy. 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 ASML at 91.46 for a 2% gain. 
• Sold CS at 30.53 for a 2.3% gain. 
• Added HLF at 65.91 yesterday. 
• Added BMRN at 64.70 yesterday.
• Currently 80% long/20% cash.  
• Current Longs: CAB at 70.38, PNK at 21.59, CMI at 121.60, MU at 13.86, HUM 91.08, DECK at 58.28.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: