Pre-market update (updated 9am eastern):

• European markets are trading mixed/flat.
• Asian markets traded -0.5% lower.
• US futures are moderately higher. 

Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30am), Jobless Claims (8:30am), Productivity and Costs (8:30am), EIA Natural Gas Report (10:30am)

Technical Outlook (SPX):

• First significant sell-off since 4/17 in the markets. It was warranted and don’t believe it is a game-changer yet. 
• The biggest worry for the bulls is if the bears can confirm the double top that is forming here by pushing below 1536. 
• A lot of apprehension in the markets ahead of the Friday’s Employment number. 
• Volume has been higher than what we have been seeing of late. 
• The sooner the bulls can push above the 1600 level, the sooner some of this market apprehensions can clear up. A number of traders believe we might be in an early roll over phase. 
• FOMC Statement yesterday was really just a non-event. 
• SPX firmly in overbought territory.
• 1570 remains a key rising support level that was formed off of the channel that started back in November. 
• VIX settled in at 14.5 – Some what of a bearish divergence since the VIX couldn’t come close to making new lows with the market making new highs. 
• 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. 
• Both channels (July October 2012) and the price channel we are currently in are very similar in nature. 
• We haven’t seen a market pullback in excess of 4% since October/November time-frame. 

My Opinions & Trades:

• No new trades yesterday. 
• Will be looking to add 1-2 new long positions today. 
• Remain Long TSM at $18.37, WDAY at $60.35, TXN at $36.02, CMG at $364.85, TSCO at $107.62
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: