Pre-market update:

• Asian markets traded 0.8% lower.
• European markets are trading 1.6% lower.
  
• US futures are trading 1.3 lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Housing Starts (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• Huge pop in the futures overnight suggests this market is ready to start the dead cat bounce. 
• Russell had already started forecasting the beginning of this bounce by finishing green in each of the last 3 days. 
• SPX tried to push the market lower, but the selling had become exasperated and the shorts were forced to cover. 
• Look for more shorts to be forced to cover their positions today as the market rallies. 
• Also watch resistance today at around 1907 on SPX.
• At some point the bears will look to use this rally to add to new short positions. Could happen today, but more likely after a few days of rallying. 
• Two straight days of either a large hammer or doji on SPX daily chart. 
• SPX 30 minute chart is showing the first signs of a higher-high being formed along with its downtrend being broken. 
• VIX dropped 4% down to 25.20.
• Volume remains well above average. 
• 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:

• Did not close out any positions yesterday.
• Added one additional long position yesterday.  
• Will consider adding 1-2 new positions today. 
• Remain long UPRO at $96.40
• 20% long / 80% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: