Pre-market update:

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

Economic reports due out (all times are eastern): MBA Purchase Applications (7), ICSC-Goldman-Store Sales (7:45), Redbook (8:55)

Technical Outlook (SPX):

• After yesterday’s recovery off of the morning lows, 1849 comes into play as a key level for the SPX to close above today. 
• A move below yesterday’s lows at 1832, would likely mean an additional leg down to 1815 again. 
• Nonetheless, the SPX has now been in consolidation for a full month now. 
• 3 out of last 4 days of above average volume on SPX. 
• VIX hovering at 12.87 and near recent lows still. 
• SPX 30-minute chart over the last 1.5 days looks bullish. 
• Markets back off of overbought conditions. 
• With the 10-day and 20-day moving averages converging together, it should provide extra support in the days ahead. 
• You also have the rising trend-line off of the October lows that is getting much closer to the price action – now at 1826. 
• January, which is often used as a barometer for the rest of the year, in terms of sentiment, remains in the red for the month. 
• We are coming up on a month of price action where we have been stuck in a 27 point price range. 
• Once the SPX closes above 1849, the bears will have all chances of a significant pullback temporarily suspended yet again. 
• 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:

• Sold TRN yesterday at $57.90 for a 3.1% gain. 
• Sold FLS at $76.59 for a 1.4% loss. 
• Added KKR at $25.94 yesterday (long)
• Added SFUN at $89 yesterday (long). 
• Remain long IPG at 17.71, MEOH at 60.16, BRO at 32.06
• I will look to add 1-2 new positions today. 
• Long 50% / Cash 50% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: