Pre-market update:

• Asian markets traded 0.3% lower.
• European markets are trading 0.5% lower.
  
• US futures are trading 0.1% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Personal Income and Outlays (8:30), Pending Home Sales (10), Dallas Fed Manufacturing Survey (10:30), 

Technical Outlook (SPX):

• Heavy bounce back on Friday that saw SPX recover the 1978 level. 
• Nonetheless, the lower low has been established on the index chart, and should lead to at least a drift lower in the days that follow. 
• SPX is looking at a possible negative month – the second such month in the last three months. 
• Futures are gapping significantly lower this morning and likely to test the 1978 level on SPX shortly after the market opens. 
• While gap ups have often been faded of late, the same can’t be said recently of gap downs, which on the whole tends to stay down on the day. 
• The rather large swings in price action on all the major indices indicates that we are not dealing with a healthy market at the moment. This is a time to preserve capital or at the very least lessen one’s long exposure. 
• Despite Friday’s bounce, SPX remains firmly in a downtrend on the 30-minute chart. 
• VIX droped 5.1% to 14.85 on Friday. 
• Trend line off of the November 2012 lows might be tested today at 1963. 
• There is very little support between current price and the August lows at 1904.
• 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:

• Did not close out any position on Friday. 
• Did not add any additional positions on Friday.
• Will look to add 1-2 new short positions today. 
• 20% Short / 80% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: