Pre-market update:

• Asian markets traded flat.
• European markets are trading 1.0% higher.
  
• US futures are trading 0.6% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Housing Market Index (10)

Technical Outlook (SPX):

• Wild day of trading on Friday. After a wild sell-off on the Ukraine/Russia conflict, the market managed to recover and settle just above the 1954 key resistance level. 
• It doesn’t seem to me that there has been a significant short squeeze intraday in this market recovery. The bounce has been fairly orderly. Not a lot of panic by the bears trying to exit their short positions in mass. 
• SPX struggled and failed to break above the 50-day moving average on Friday. It is set today, to gap above it. 
• As SPX pushes into the 1960’s today, it becomes more and more likely that the bears are losing their grip on this market and more probable that the market will eventually make new all time highs yet again. 
• The bears will need to fill today’s gap and push this market lower if it truly wants to keep this market from rallying away from them. 
• Some of the action on Friday, and particularly the volume, can be attributed to options expiration day. 
• VIX rose 5.9% to 13.15 on Friday. 
• Inverse head and shoulders pattern that I mentioned Thursday is playing out perfectly so far on the SPX 30 minute chart. 
• Gaps above significant levels of resistance is fairly common and often a good sign that the market intends to market much higher going forward.  
• A move below 1928 would complicate things greatly for the bulls. 
• Ultimately, the main goal for the bears going forward should be to get price back below 1904. 
• 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 on Friday. 
• Did not close out any positions on Friday. 
• Remain long EBAY at 51.75, GPK at 12.00, AAPL at 95.56, FB at 72.53, ESRX at 71.01, UA at 69.10, STLD at 21.95
• Will look to add 1 new long position today. 
• 80% Long / 20% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: