Pre-market update:

• European markets are trading 0.7% higher. 
• Asian markets traded 0.3% lower.
• US futures are trading flat.  

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

Technical Outlook (SPX):

• The market has been strong for four solid days and has rallied 47 points from the markets lows. 
• Price action is running into a major road block with the underside of the previous uptrend and price level resistance at 1654. 
• I think that there is a chance we could pullback for a few days or at least consolidate considering the heavy resistance overhead and how overextended we currently are. 
• Short-term SPX is overbought now. 
• Volume was much lighter than what we saw on Monday. 
• SPY chart is showing a ton of gaps in the chart that have so far gone unfilled – that is something worth keeping a eye out for. 
• SPX has finished higher 8 out of the last 10 trading sessions. 
• The next task at hand is to break through 1654 or the 6/18 highs, and by doing so, the market would put an official end to the sell-off by establishing a higher-high. 
• The one thing you are not seeing that typically accompanies a major market sell-off is continuous bad news coming out. We had the FOMC Statement and that has been it. 
• I simply do not think the bears can keep driving this market lower without some form of a catalyst besides the tapering comments made before by the FOMC. 
• Markets don’t care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

• Closed BCR at 108.3 for a 0.3% loss. 
• Closed BDX at 98.79 for a 0.5% loss. 
• Added SJM at 104.63. 
• Current Longs: WLP at 80, GOOG at 872.67, VZ at 51.33.
• I’ll look to add 1-2 new positions today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: