Pre-market update:

• Asian markets traded 0.4% higher. 
• European markets are trading 0.2% lower.
• US futures are trading 0.1% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Producer Price Index (8:30), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

• We got the follow through yesterday – but it was only a slight amount after giving up much of the day’s gains. 
• The biggest concern as a bull at this point is whether we are setting up for another sell-off like we saw on 4/4 after breaking temporarily out of the price range. 
• 1900 was hit intraday yesterday but as soon as it happened, the market quickly saw the sell programs come online and never saw that price level again. 
• Major milestones like 1900 can often lead to profit-taking as it represents a predefined/psychological level where investors decide to book their gains. 
• The bears, if they want to stay relevant here, needs to push price back below 1883 like they did back in April. 
• Russell took a pummeling seeing a much larger sell-off than what was had in any of the other indices. 
• Small caps continue to be the market’s weak spot. 
• VIX trading near year-long support
• Volume was non-existent yesterday. 
• 30-minute chart confirms the price action of the daily chart. 
• 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 Opinions & Trades:

• Added one new long positions to the portfolio yesterday. 
• Did not close out any positions yesterday.
• Remain short TEL at 58.18.
• Remain long BHI at 70.04, GPK at 10.57, KORS at 94.43.
• Short 10% / 40% Long / 50% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: