Pre-market update:

• Asian markets traded -1.3% lower.
• European markets are trading 0.5% higher. 
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11), Bernanke Speaks (2:30)

Technical Outlook (SPX):

• Heavy sell-off to start 2014 off yesterday. 
• The important part is that despite pushing below the 10-day moving average, the bulls managed to buy the dip and keep prices above the MA into the close and thereby giving us a reference point for moving forward. 
• In the case of additional selling today, the bulls need to avoid giving up the 1809 price level. A push below that level would usher in additional bearish tones to the market. 
• Yesterday’s sell-off by itself doesn’t create any significant red flags for me at this point. No serious damage to the charts at this point. 
• For the bears, they must push this market lower today, otherwise dip-buyers will come in and push this market off of the 10-day moving average. 
• Volume totals over the past two weeks has been unbelievably weak especially when compared to historical volume patterns. 
• We remain firmly entrenched in overbought territory – but history shows that it can remain their for extended periods of time. 
• VIX only popped a slight bit yesterday to 14.23 – a bit of a problem for the bears here. 
• Trend-line support off of the October lows lies at 1793.- and currently out of reach for the bears. 
• There is absolutely no reason at all to be net-short this market. 
• 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 LAMR at $51.49 for a 0.6% gain yesterday. 
• Sold GPOR yesterday at $60.73 for a 1% loss. 
• Did not add any new positions on yesterday.
• Remain long FLS at 72.25, RCL at 44.46, TRMB at 33.15. 
• I expect to add 1-3 new positions today. 
• Long 30% / Cash 70% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: