Pre-market update:

• Asian markets traded 0.7% lower.
• European markets are trading 0.3% lower.
  
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30), Existing Home Sales (10)

Technical Outlook (SPX):

• Quiet overall day on Friday, that saw a huge amount of volume flood in due to it being quadruple witching options expiration day. 
• Within the last five minutes there was a drop in the SPX that took it from positive to negative on the day. 
• Support at 2010-11 was held on SPX yesterday despite the sell-off at the close. 
• SPX seeing some weakness this morning as we near the opening bell. Don’t be surprised, as is often seen, if the dip buyers come in within the first hour of trading and put the day’s lows in. 
• You have to be very careful of shorting anything at these current price levels. Just because there might be a sell-off today, doesn’t mean the market has lost its bullishness. Instead, wait for price action to confirm sentiment shift. 
• VIX rose on Friday, ever so slightly to 12.11. 
• SPX is at risk of breaking the rising channel on the 30 minute chart that started back on the 16th. 
• SPX is back in in overbought territory. 
• At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
• 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:

• Closed out SNV at 24.98 for a 0.6% gain. 
• Added one additional long on Friday. 
• Will look to add 1-2 new long position today if this market manages to bounce off of the morning lows.
• 30% Long / 70% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: