Pre-market update:

• Asian markets traded 0.2% higher.
• European markets are trading 1.2% higher.
  
• US futures are trading 0.9% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), International Trade (8:30), EIA Petroelum Status Report (10:30), FOMC Minutes (2)

Technical Outlook (SPX):

• SPX saw its fifth straight day of selling. A feat that we never saw in 2014, and hasn’t been seen since December 2013. 
• The rising trend-line off of the October lows was broken yesterday. 
• The potential exists for a possible test of the 200-day moving average in the days/weeks to come, if the market cannot capitalize off of today’s bounce. 
• If you are still short this market, this is the time where you don’t want to let the market squeeze you out of your positions. Be aggressive with capturing the gains. 
• VIX rose another 6% to 21.12 but gave up much of the progress made on the day. 
• SPX 30 minute chart still has a solid downtrend in place and needs to break 2030 to create a higher-high in it finally. 
• Volume has continued to improve over the last five days and back to normal trading levels. 
• Oil has pulled back 10% in just two days – weighing heavily on the market in the process. 
• T2108 (% of stocks trading above the 40-day moving average) dropped 12.5% to settle at 34%. 
• That whole saying about, “As January goes, so goes the year” has an 89.1% accuracy to it – obviously that didn’t apply to last year though. 
• 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:

• Added one new position yesterday
• Will consider adding 1-2 new positions today. 
• 10% Long / 100% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: