Pre-market update:

• Asian markets traded 1.7% lower.
• European markets are trading 0.2% lower.
  
• US futures are trading 0.7%Ya’ll  higher ahead of the market open. 
  

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

Technical Outlook (SPX):

• Another huge late day sell-off with SPX dropping another 1.65%. 
• VIX spiked to its highest level since June of 2012. Closing at 24.64.
• Yesterday was a huge deal. SPX broke the 200-day moving average for the first time in 477 days. 
• Bigger than that was the fact that SPX created a lower-low for the market – something I can’t find occurring on the weekly chart since the huge summer sell-off of 2011. 
• Yes that move yesterday was big. 
• But what the market needs to form now, in order to keep the trend-going is a lower-high. SPX may attempt to form one here with a dead cat bounce starting today. 
• SPX is so oversold that a solid rally off of these lows makes sense – but only expect it to last 2-3 days. 
• T2108 was nearly unchanged yesterday which shows signs of market exhaustion in my opinion. 
• Yesterday’s late day selling was one of the strongest fear signals in this market yet. 
• 1921 on SPX will represent overhead resistance. 
• 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:

• Covered GPK yesterday at 11.28 for a 5.5% gain. 
• Covered EMC yesterday at 27.8 for a 1.9% gain. 
• Covered ORCL yesterday at 38.63 for a 0.8% loss. 
• Covered BKD yesterday at 31.54 for a 3.3% gain. 
• Sold CMG yesterday at 654.26 for a 2.5% loss. 
• Will consider adding 1-2 new positions today. 
• Remain long SH at 23.38
• 10% long / 90% cash (inverse ETF).
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: