Pre-market update:

• Asian markets traded 1.0% lower.
• European markets are trading flat. 
• US futures are trading 0.1% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), GDP (8:30), Jobless Claims (8:30), Corporate Profits (8:30), Factory Orders (10), EIA Natural Gas Report (10:30), Treasury STRIPS (3)

Technical Outlook (SPX):

• Strong price action in both directions yesterday which eventually saw price recover off of the days lows and just a couple of points below break even. 
• The key yesterday was the fact that we held the 20-day moving average for the second straight day, and despite an intraday dip below the moving average, the dip buyers came in force and kept the market from getting out of hand. 
• The last four days have marked the first time Since September that we have sold off at least four straight days. 
• At this point the SPX is poised to try to reclaim 1800 and rally off of a strong doji candle. 
• The notion of being short at this juncture seems to be of much higher risk and the potential to be squeezed out of those positions. 
• Volume over the last two days have been above average. 
• Sharp bounce on the 30-minute intraday SPX chart. We could be seeing a much larger head and shoulders pattern forming. 
• VIX is at its highest levels since mid-October. 
• This is the furthest from overbought that we’ve been since 10/10/13.
• 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. 
• 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 ETFC at $17.88 yesterday for a 1.4% gain. 
• Added two additional long positions yesterday including CX at $10.95.. 
• May add 1-2 new positions today. 
• Current Longs: JAH at 56.50, ADSK at 45.75, LVS at 71.92, MPEL at 35.68.
• Long 60% / Cash 40% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: