Pre-market update:

• Asian markets traded 0.4% lower.
• European markets are trading 1.5% lower.
  
• US futures are trading 0.5% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• SPX looking at a fourth straight day of selling in this market – a rarity even during some of the more recent short-term bear markets. 
• Four straight days of selling hasn’t been seen since December 2013. 
• Market is acting in a very similar manner to what we saw last year when the first two trading sessions of the year were decisively bearish. 
• There is actually a very strong chance that SPX may in fact rally off of these lows of the day. 
• Potential bullish divergence in VIX. As SPX finished slightly lower on the day, VIX finished a very noticeable 7.3% to 17.79. 
• Possible base trying to form on SPX 30 minute chart, or what may be just a lower-high. 
• SPX 20-day moving average held on Friday which has often been the case throughout 2014. There will be another test at the market open today. 
• Today the SPX 50-day moving average could be tested as well depending on the extent of the selling today. 
• Volume levels should get back to normal today. 
• That whole saying about, “As January goes, so goes the year” has an 89.1% accuracy to it. 
• 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 AAL at $53.84 on Friday for a 5.0% gain. 
• Closed CMG at $682.16 on Friday for a 2.5% gain.
• Closed out MXIM at $31.68 on Friday for a 0.7% gain. 
• Closed out KSS at $59.96 on Friday for a 2.2% loss. 
• Added one new position to the portfolio on Friday.
• Will consider adding 1-2 new positions today. 
• 10% long / 90% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: