Pre-market update:

• Asian markets traded 0.9% higher.
• European markets are trading 2.3% higher.
  
• US futures are trading 0.9% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Challenger Job Report (7:30), Jobless Claims (8:30), EIA Natural Gas Report (10:30), Consumer Credit (3)

Technical Outlook (SPX):

• . 

• Respectable bounce yesterday with more follow through being attempted today. 
• Today is the key day as to whether this is a dead cat bounce or not. 
• If the bulls fail to hold on to the gains today, it will be a huge bearish sign that the recent bounce is nothing more than a dead cat bounce. 
• SPX in a position to reclaim the 50-day moving average and possibly even the 20-day and 50-day moving averages today. 
• VIX dropped 8.6% down to 19.30. 
• If the market holds on to these gains today, there is a good chance that we see further rallying off of the recent lows and another shot at all time highs again. 
• T2108 (% of stocks trading above the 40-day moving average) had a nice pop of 19% yesterday to finish at 40.41. 
• Rising trend-line off of the October lows was recaptured yesterday. 
• Nice inverse head and shoulders pattern to be confirmed on SPX 30 minute chart today. 
• Oil not showing the same enthusiasm today as the indices….see if this weighs on SPX price action. 
• That whole saying about, “As January goes, so goes the year” has an 89.1% accuracy to it – obviously that didn’t apply to last year though. 
• 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:

• Sold UPRO yesterday at 125.15 for a 2.4% gain.
• Added one new position yesterday
• Will consider adding 1-2 new positions today. 
• 10% Long / 90% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: