Pre-market update (updated 9am eastern):

• European markets are trading 0.2% higher. 
• Asian markets traded 1.4% higher. NIKKEI bounced nearly 5%
• US futures are slightly higher ahead of the bell. 

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

Technical Outlook (SPX):

• SPX bounced for us as did the entire market on Friday providing a great deal of Follow through off of Thursday’s bounce off of the 50-day moving average. 
• SPX also came off of oversold conditions with Friday’s move and is now trading above the 10-day moving average but below the 20-day MA. 
• Volume has returned back to normal levels. 
• I am following the analogue from 4/15-4/22 and expect a similar bounce to play out thereafter with additional bullishness on the short-term horizon. 
• The 30 minute chart on SPX is demonstrating a well defined inverse head and shoulders pattern with confirmation occurring right at the close on Friday. 
• SPX also broke the short-term downtrend, that began on 5/23 and was broken on Friday. 
• Failure to continue the rally, would result in a significant head fake in the markets, and would cast a heavy dose of bearishness on this market going forward. 
• These conditions are ripe for a melt up today as bears try to figure out how to cover their positions this morning as profits are quickly deteriorating for them. 
• This is why trading short on more than just a day-trading basis is very difficult, because th squeeze that is manufactured on a near automatic basis makes the risk/reward very uninviting. 
• Key support rests at 1601. 
• VIX currently back in the 15’s. 
• We’ve seen three pullbacks besides the current one since the November lows were established. All three had a moment where key support was broken, only for the SPX to bounce each time the following day and resume the upward climb. 
• 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:

• Sold  AMZN at 276.60 for a 3.5% gain. 
• Sold SLW at $23.47 for a 3.3% loss. 
• Added CME at $70.06.
• Added NWS at $32.05.
• Considering 1-2 new positions on additional market strength. 
• Long HLIT at 6.08, HUM at $80.60, AMZN at $267.21, CF at $191.35, APA at $84.95, KSS at $51.83
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: