Pre-market update:

• Asian markets traded 0.2% lower. 
• European markets are trading 0.5% lower..
  
• US futures are trading 0.1% lower. 

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• SPX finished its second straight day out side of the lower Bollinger band.
• The 50-day moving average, which has been a strong support/resistance level in recent past, closed below the MA on Friday but just a shade.
• Often times, the SPX will spend 2-3 days outside the lower Bollinger Band, but in extreme bearish markets, it can live outside of it (see Summer 2011).
• We are firmly entrenched in oversold territory.
• Head and shoulders pattern on the 30-minute chart looks like it has fully played itself out, and at the least a small bounce is due.
• Volume has picked up each of the past three trading sessions, with Friday being notably higher.
• 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.
• Rising support off of the November 2012 lows is at 1616 today. That is the nearest significant support level on the daily chart.
• 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:

• Bought BPOP at 33.63 on Friday.
  
• Sold AMCC at 11.53 for a -3.7% loss.
  
• Currently 50% long / 50% cash.  
• Current Longs: FLR at 65.99, WYNN at 139.08, XEC at 79.75, FDX 108.18.
  
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: