Pre-market update (updated 9am eastern):

• European markets are trading 1.1% higher. 
• Asian markets traded 1.6% higher.
• US futures are trading moderately higher and in excess of 10 points on the SPX.

Economic reports due out (all times are eastern): Empire Manufacturing Survey (8:30am), Housing Market Index (10am)

Technical Outlook (SPX):

• Strong price action this morning looks to push price action above its 4-day range possibly. 
• Pay close attention to the 20-day moving average at around 1641 today. The last three times we have tested that MA it has resulted in a sharp rejection and reversal lower where the day’s gains turn into heavy losses. 
• Volume was light on Friday, similar to other recent down days. 
• The highs from 6/10 must be taken out which would result in ruining the prospects the bears had for a new ‘lower-high’.
• It would also confirm a short-term double bottom as well. 
• One could easily make the argument that we have been stuck in consolidation since 6/8 between 1607 and 1644.
• The 50-day moving average continues to offer a great deal of support. It has been a long time since we’ve seen support and resistance levels come into play on the traditional moving averages. 
• Once again, the key level for the SPX to trade above is 1648, or Monday’s highs. Unless it can do this, any upward move is utterly meaningless. 
• Same is true to the downside, unless it can break last Thursday’s lows, there is nothing here to get excited about here. 
• 30-minute SPX chart shows a strong pullback and the need for a bounce at current price levels. 
• The rising trend-line today now becomes 1619 today. 
• VIX back into the 17’s.
• Strong correlation between US Market’s and the Japanese markets right now, as the latter is in the midst of a significant sell-off since 5/22. 
• Key price support rests at 1601. 
• 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:

• No new positions added on Friday, nothing out there worth adding more risk for.  
• Will look to add 1-2 new long positions today. 
• Tightened the stop-loss on RKT to protect the gains on the recent push higher.  
• Long HUM at $80.60, APA at $84.95, KSS at 51.99, DSW at 74.40, RKT at 101.24, AMZN at 273.23.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: