Technical Outlook (SPX):

• SPX has bounced hard since hitting its intraday lows on Monday – a total of 53 points from low to high. 
• The SPX closed above the 10-day moving average but struggled to do so with the 20 and 50-day moving averages
• Throughout tomorrow morning, there will be a lot of Fed speak that could cause some market issues. Three knuckleheads in all. However, I doubt these guys are rushing out there to create new ripples in the market considering what they witnessed last week when they decided to be forthcoming for once. I would guess that they will use all the right words. 
• Also, we can often times get some wacky price movements on the last day of the quarter.
• The VIX continues to drop quickly this time back under 17. 
• SPX managed to hold 1601 yesterday and push through 1608, which was the main resistance level it needed to overcome. Minor resistance at 1629. 
• Prior to this past Monday, I thought we would just rally to 1608 and then experience another market drop and continuation of the downtrend, but the more I considered market conditions, the more I believed that original belief was flawed. 
• Previous sell-offs always had a pipeline of bad news. This sell-off does not. The only negative news piece is really last week’s FOMC statement and presser. 
• For the downturn to persist, there needs to be greater negativity in this market. Right now it isn’t there. 
• Volume holding strong.
• We are off short-term oversold levels. 
• We have now established a lower-high and lower low for the first time in this market for 2013. 
• The S&P 500 is on the verge of having its first down month of 2013. Needs to close above 1630 in the next two days to avoid that. 
• 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:

• Added BCR at 108.70. 
• Current Longs: PCYC at 80.56, WLP at 80, CME at 76.35, LPI at 20.28, GS at 153.16, GOOG at 872.67, V at 182.15.
• At this point I will only add new positions to replace and positions I might sell out of. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: