Pre-market update:

• Asian markets traded 0.3% higher.
• European markets are trading 0.8% higher.
  
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• SPX gave back about half of the gains on Friday from the previous trading session. 
• Currently price is sitting on the SPX 50-day moving average. 
• This provides a huge opportunity for the bears to stomp on this current bounce and send price back down below 1/7 lows at 1992. In doing so, it would do something that it couldn’t do on the two previous bounces and that is create a dead cat bounce. 
• By breaking the 1/7 lows, SPX would create a lower-low and lower-high. 
• SPX lost the 10-day moving average and 20-day moving average on Friday. 
• Potential head and shoulders pattern on the daily SPX chart. 
• Despite the sell-off in the broader market, SPX was only up 3.2% 
• Potential higher-low so far on SPX 30 minute chart. 
• Intraday sell-offs continue to dramatically affect price action of stocks in general. 
• T2108 (% of stocks trading above the 40-day moving average) dropped 7.8% down to 45.51%. A much more smaller move compared to what we have seen over the previous two trading sessions.  
• 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 sell any positions yesterday.
• Did not add any new positions yesterday. 
• Will consider adding 1-2 new positions today. 
• Remain long WFM at 49.96, EBAY at 55.68, AGN at 216.05. 
• 30% Long / 70% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: