Pre-market update:

• Asian markets traded 0.5% higher.
• European markets are trading flat. 
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): International Trade (8:30), Jobless Claims (8:30), PMI Manufacturing Index Flash (8:58), JOLTS, 10), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

• It was only the second day in the past eleven trading sessions where SPX finished lower on the day. 
• Dip-buyers came in and brought the market off the lows and eliminating half of the day’s losses. 
• The bears, besides the first 45 minutes of trading showed no desire to push this market lower. 
• As a result the bias in this market is still to the upside and should be traded accordingly. 
• Double top in the S&P futures overnight could be a problem at the market open. 
• Some distribution in the 30-minute SPX chart which is forming a head and shoulders pattern. 
• 1740, based on previous comment, is a key level for SPX to hold. 
• VIX showed very little concern about the possibilities of a market pullback. 
• Very little in the way of head-winds for the market as Syria has left the spot-light, shut-downs, debt-ceiling are over with for now, and the most dovish Fed chairman poised to take the helm. 
• 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:

• Added two new long positions yesterday. 
• Closed CMI at 136.13 from 133.25 for a 2.3% gain. 
• Covered and closed HTZ at 23.38 for a 1.1% gain. 
• I am primarily focused on trading to the long side going forward. Will likely look to add more long exposure today. 
• Currently 40% long / 10% short / 50% cash.  
• Current Longs: LYV at 18.80, MWE at 70.20. 
• Current Shorts: AXL at 19.08.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: