Pre-market update:

• Asian markets traded 1.2% lower.
• European markets are trading 1.2% higher.
  
• US futures are trading 0.5% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC Goldman Store Sales (7:45), Redbook (8:55), Existing Home Sales (10)

Technical Outlook (SPX):

• The current bounce is playing out in textbook fashion. Typical market bounces string together multiple days of strong upward momentum. 
• Today SPX challenges the 200-day moving average after closing just a shade above the 50-day moving average yesterday. 
• VIX dropped 15.6% down to 18.57, which puts the VIX back below the 20 threshold. 
• Getting price above 1898 yesterday was key for SPX which makes a push towards 1920 all the more likely. 
• Careful with trying to jump in front of this market to the short side. The market can bounce much higher than one would ever think possible. 
• News out of the European Central Bank bought Italian covered bonds causing SPX to spike 30 points off of the lows of the day.  
• SPX 30 minute chart still shows consecutive higher-highs and higher-lows.  
• 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:

• Closed out UPRO yesterday at 104.80 for a 8.7% gain. 
• Added two new long positions to the portfolio yesterday. 
• Will consider adding 1-2 new positions today. 
• Remain long ROST at 76.76. 
• 30% long / 70% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: