Pre-market update:

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

Economic reports due out (all times are eastern): MBA Purchase Applications (7), DUrable Goods Orders (8:30), New Home Sales (10), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

• Yet another pullback and a drop below three key support levels as the SPX finsihed red for a fourth straight day. 
• SPX closed below 1700, the 10-day moving average and the ‘hidden’ support level as ‘shown’ below. 
• Two significant patterns taking place simultaneously on the 30 minute chart: a head and shoulders pattern dating back to 9/16 and a triple bottom starting on 9/20. 
• 1687 could offer minor support should we sell-off futher here. 
• A break of the 10-day moving average could be indicative of a greater correction underway in the market. 
• Volume back to normal.
• Slight sell-off in the VIX yestereday. 
• A 1-2 week period of consolidation at this point would not be surprising considering the price action that we’ve seen after similar run ups this year on the SPX. 
• I am continuing to trade to the long side, and for the foreseeable future. 
• Markets don’t care about the economy nor earnings. 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:

• Covered FITB at 18.04 for a 2.1% gain. 
• Added one additional position to the portfolio yesterday as a long. 
• Currently 30% long / 70% cash.  
• Current Longs: BIDU at $143.15, RDC at 37.17
• I’ll look to add one additional position to the long side today if conditions permit. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: