Pre-market update:

• Asian markets traded 0.9% lower.
• European markets are trading 0.9% lower. 
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), International Trade (8:30), New Home Sales (10), ISM Non-Manufacturing Index (10), EIA Petroleum Status Report (10:30), Beige Book (2)

Technical Outlook (SPX):

• Despite an initial heavy sell-off yesterday, the bears were unable to breakthrough the 20-day moving average, and like the previous two tests, the dip buyers came in strong and rallied off of the 20-day MA. 
• Dip buying saw over half of the day’s losses wiped away. 
• However, the 10-day moving average was sliced through and closed below. 
• This is the furthest from overbought that we’ve been since 10/10/13.
• In essence, I don’t see any reason to be heavily short yet in this market. Wait for the market to change directions first. 
• Being that we are up an unprecedented 8 straight weeks, I figure that this weakness will probably hold for the weak (overall).
• There is some room for this market to fall without causing much technical damage, but will want to avoid pushing below the 1777 level. 
• Volume picked up yesterday. 
• SPX 30-minute chart showing strong sell-off in place. 
• VIX remains elevated. 
• A move below 1800 could get traders rather uneasy. The key level for the bulls to hold sits at 1777. At that point the current rally would be over and a new lower-low would be in place. 
• 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:

• Closed KKR yesterday at $23.58 for a 1.7% gain. 
• Closed GES yesterday at $33.86 for a 1.7% loss.. 
• Added three additional long positions yesterday. 
• May add 1-2 new positions today. 
• Current Longs: ETFC at 17.63, JAH at 56.50.
• Long 50% / Cash 50% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: