Pre-market update:

• Asian markets traded 0.8% lower.
• European markets are trading 0.4% higher.
  
• US futures are trading 0.1% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), Jobless Claims (8:30), Chicago PMI (9:45), Pending Home Sales (10), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

• SPX finished right on short-term support yesterday as noted in the chart below. 
• Last two years the final day of trading has been a profitable one.
• SPX finished below the 5-day moving average which it hasn’t done since the rally initially began off of the 12/17 lows. 
• The bears really need to push this lower today as follow through on yesterday if they want to create some cause for concern among investors. 
• 30-minute chart of SPX doesn’t at all look healthy – in fact it looks more like a rollover is developing. 
• VIX rose another 5.7% to 15.92. 
• Surprisingly the T2108 (% of stocks trading above the 40-day moving average) moved up yesterday to finish at 53.03
• Volume continues to come in extremely light, and that is common for trading at the end of the year. 
• SPX is closed on Thursday for New Year’s Day. 
• We are currently in the period that is considered to be the historic “Santa Rally” – be careful with any attempts to short this market. 
• 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:

• Closed UPRO yesterday at 136.95 for a 16.8% gain. 
• Did not add any new positions to the portfolio yesterday. 
• Will consider adding 1-2 new positions today. 
• Remain long FB at 77.98, MXIM at 31.45, CMG at 665.48, AAL at 51.26.
• 40% long / 60% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: