Pre-market update:

• Asian markets traded flat.
• European markets are trading 0.3% lower.
  
• US futures are trading 0.2% lower
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Existing Home Sales (10), EIA Petroleum Status (10:30), FOMC Minutes (2).

Technical Outlook (SPX):

• A rather solid day yesterday until the final 30 minutes of trading which led to 1/2 the day’s gains evaporating.
• Yesterday’s bounce took us into the underside of the 50-day moving average which it was unable to break.
• Any significant rally over the next few days will face heavy resistance at the 1684 level of price resistance.
• Only 34 points removed from long-term rising support off of the November 2012 lows at 1618.
• Despite the bounce in SPX, RUT and Nasdaq yesterday, the Dow finished lower for a 5th straight day and 10 out of the last 12 days. The need for a larger bounce is necessary. 
• SPX remains well oversold.
• 30-minute chart remains entrenched in a downtrend.
  
• Volume has been light last two sessions.
  
• When short the market in this fed-induced market, you have to to take profits quickly, otherwise you risk being dead-cat bounced out of your positions.
• Dead cat bounce sees no resistance until 1684.
• I’m still not looking to short this market. Sell-offs in this market environment are quick and hard to capitalize on – better off holding on to the long side and buying on the dips.
• It is arguable that the SPX is simply trying to form its first higher-low off of the 6/24 lows.
• For the market to continue its drop, there needs to be a steady stream of bad news –  a pipe line per se, to keep driving this market lower.
  
• Markets don’t care about the economy. 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:

• Added CMI and AMZN yesterday, bringing my total to 7.
  
• Currently 70% long / 30% cash.  
• Current Longs: FLR at 65.99, WYNN at 139.08, XEC at 79.75, FDX 108.18, BPOP at 32.76.
  
• I’ll look to add 1-2 new positions today.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: