Pre-market update:

• Asian markets traded 0.3% lower
• European markets are 0.6% higher.
  
• US futures are trading 0.4% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): PMI Manufacturing Index (9:45), ISM Manufacturing Index (10)

Technical Outlook (SPX):

• SPX finished below the 5-day moving average for the first time since 10/16. 
• This doesn’t necessarily mean a reversal is in order for this market, but it does mean that the market has lost its uber-bullishness that we saw in the latter half of October and early November. 
• Volume was fairly strong for a half day of trading (as much as what we saw on a full day of trading Wednesday) .
• Oil is severely weakening and dragging down a huge component of the market – namely oil, followed by the metals. 
• Oil trade setups to the long side are nearly non-existent and should not be attempted, even as a bounce attempt. There is far too much overnight risk in these plays. 
• 2057 will represent short-term support for this market, which is also the 10-day moving average – a price level that the market has consistently bought the dip on. 
• These gap lowers have been consistently bought since October 15th. I would be very careful about adding any short positions today until it is becoming apparent that this market is rolling over. 
• SPX 30-minute chart still not seeing any significant break of key support levels. 
• VIX rocketed 10.4% to 13.33. 
• The % of stocks trading above the 40-day moving average dropped 9.3% to 63.5% – a significant drop and worth keeping a close eye on.  
• 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 positions on Friday. 
• Did not add any new positions on Friday. 
• Will consider adding 1-2 new long positions today or a short position as a hedge depending on market conditions. 
• Remain long SBUX at 78.47, SNDK at 100.86, CREE at 36.15, TDC at 45.06, TGT at 72.11.
• 50% long / 50% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: