Pre-market update:

• Asian markets traded 0.2% higher.
• European markets are trading 1.3% lower.
  
• US futures are trading 0.5% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Producer Price Index (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• Massive rally yesterday but eventually saw about 20 points or 2/3’s of the day’s gains disappear in the final hours of trading. 
• This was the worst case scenario in terms of what could go wrong for the bull’s rally. 
• SPX tried to regain the 20-day moving average but was rejected right at the MA and jump started the afternoon sell-off. 
• SPX still remains firmly below the 5-day moving average. 
• Volume lightened up a bit yesterday after three consecutive days of strong rising volume levels. 
• Trend-line off of the February 2013 lows is threatening to break again. 
• Very little in the way of support beyond 2030. 
• Oil sell-off suggests that there is something much more fundamentally wrong in the commodity than simple “oversupply”.
• VIX finished 8.3% higher to close above the bearish 20 mark. 
• Inverse head and shoulders pattern on $SPX 30 minute chart that should be nullified at the market open. 
• T2108 (% of stocks trading above the 40-day moving average) fell  yet again by 1% down to 44.6%. 
• 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 an ultra short ETF yesterday. 
• Closed out EBAY at 56.84 for a 2.8% gain. 
• Closed out GLW at 210.30 for a 0.5% gain. 
• Covered MAT at 31.01 for a 2.3% loss. 
• Will consider adding 1-2 new positions today. 
• Remain long AAPL at 112.74. 
• Remain short YHOO at 49.94
• 10% long /  20% Short / 70% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: