Pre-market update:

• Asian markets traded 1.4% higher.
• European markets are trading 0.2% higher.
  
• US futures are trading 0.2% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), EIA Petroleum Status Report (10:30), FOMC Statement (2)

Technical Outlook (SPX):

• SPX continues with one of its most amazing bounces/short squeezes by now rallying 165 points from the 10/15 lows.
• Strong rally yesterday with a noticeable uptick in the daily volume. 
• Most importantly, the 50-day moving average was recaptured. 
• Broke through two significant resistance price levels – 1976-8 and 1984. 
• SPX well oversold at this point. While only 12.9% of stocks were trading above their 40-day moving average on 10/15, now 55.3% are. 
• Yesterday was a breakout of consolidation for the SPX 30-minute chart. 
• Today is the FOMC Statement – I would expect for a lot of volatility to be associated with this event as the market has gone through a tumultuous period over the last two months and traders will be looking for any additional role or stimulus that the Fed might be willing to provide. 
• VIX dropped 10.3% down to 14.52. 
• 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 additional long position to the portfolio. 
• Closed out SH at 22.91 for a 2.1% loss (hedge position)
• Will consider adding 1-2 new long positions today after the FOMC Statement
• Remain long AAPL at 101.73, SH at 23.41, RAX at 35.93, BLMN at 18.52.
• 40% long / 60% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: