Pre-market update:

• Asian markets traded 1.1% higher.
• European markets are trading 0.2% higher.
  
• US futures are trading 0.4% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Atlanta Fed Business Inflation Expectations (10), Leading Indicators (10)

Technical Outlook (SPX):

• SPX broke out to and closed at new all-time highs yesterday. A big win for the bulls and a breakout of consolidation. 
• Today’s big event is the IPO of Alibaba. 
• At this point the market is clearly in the bulls favor and with price breaking out of the short-term range, it is very much looking like we’ll see another solid price advancement, though not as strong as the one off of the August lows. 
• SPX just about overbought yet again. 
• VIX continues to see the heavy selling by dropping another 4.9% to 12.03. 
• SPY volume continues to be elevated – a strong sign for the bulls. 
• The one troubling aspect of this market is that despite establishing new all-time highs, stocks in general are well off the their recent highs. In fact only 42% of stocks are trading above their 40-day moving average. 
• While SPX chart has a bullish tilt to it, I would still show caution as stocks aren’t nearly as healthy under the surface. 
• SPX has established a new uptrend on the 30-minute chart. 
• At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
• 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:

• Added one new position yesterday. 
• Did not sell any positions yesterday. 
• Will look to add 1-2 new long position today.
• 30% Long / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: