Pre-market update:

• Asian markets traded 0.6% higher. 
• European markets are trading 1.0% higher.
• US futures are trading 0.4% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Challenger Job Cut Report (7:30), International Trade (8:30), Jobless Claims (8:30), Productivity and Costs (8:30), EIA Natural Gas Report (10:30), Treasury STRIPS (3)

Technical Outlook (SPX):

• Strong bounce off of yesterday’s lows that despite an intraday lower that temporarily took us below Monday’s lows. 
• This represents a great opportunity to build on yesterday’s recovery and make a push to wipe away the losses from Monday. 
• Depending on how far this bounce takes us there should be some form of resistance between 1772 and 1794. 
• The range is wide but full of resistance in between. 
• If the bears get squeezed out of their positions today, there is plenty of ammunition there to really push the markets significantly higher. It is all about inducing a strong level of fear that they will lose their profits if they don’t cover. 
• Volume has been very strong this week. 
• Monday’s sell-off was the biggest we’ve seen since 6/20/13. 
• VIX continuing to peal off of its 20+ highs. 
• Double bottom formed in the SPX 30-minute chart – looks solid. 
• A lower-low has now been formed on the SPX chart. 
• The potential for a major short squeeze is very possible – traders are getting sucked into the short trade and it is already becoming very crowded. 
• Markets don’t care about the economy nor earnings. 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:

• Added Two new long positions yesterday. 
• Closed out CAM at 58.52 for a 3.1% loss.
• Remain long SPLK at 75.00 and MU at 23.19
• Will consider 1-2 new positions based on market conditions. 
• Long 40% / Cash 60% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: