Pre-market update:

• Asian markets traded 0.7% higher.
• European markets are trading 0.1% lower.
  
• US futures are trading 0.3% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Durable Goods Orders (8:30), Jobless Claims (8:30), PMI Services Flash (9:45), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

• Impressive bounce yesterday for the market as SPX rallied a solid 20 points off of the lows of the day. 
• SPX tested 1978 as mentioned in all the Trading Plans that were posted this week and the support held, leading to a massive short squeeze. 
• Some weakness today and a moderate gap down to take place. The key for the bulls will be to buy the dip early on and prop this market back up. 
• Yesterday’s bounce and short squeeze seemed like it was much more than just a simple dead cat bounce, based on the strength and extent of the rally. 
• With that said, all the rally ultimately did was keep us in the very tight trading range that SPX has been stuck in all month long. 
• VIX gave up some huge gains by dropping 11.1% down to 13.27.
• SPX 30 minute chart still looks very much range bound. 
• The monthly chart of SPX is shaping up to be a very tight doji. As it stands now SPX is only 5 points lower than where it ended July at. 
• Key level to watch on SPX today is 1978. If that price level breaks, the market will create a lower-low which would be very bearish. 
• SPY volume has been strong and above average for the past two weeks. 
• 50-day moving held strong yesterday. 
• At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
• 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:

• Added one new position yesterday. 
• Sold WHR at 150.98 for a 2.1% loss.  
• Will look to add 1-2 new long positions today if the market can follow through on yesterday’s rally. 
• Remain long GOOG at 587.60, TWTR at 52.29.
• 30% Long / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: