Pre-market update:

• Asian markets traded 1.4% higher. 
• European markets are trading 0.3% higher. 
• US futures are trading 0.1% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): Producer Price Index (8:30), Retail Sales (8:30), Consumer Sentiment (9:55), Business Inventories (10)

Technical Outlook (SPX):

• Insane market bounce that was the biggest trading day since January 2, 2013. 
• Of equal astonishment is the fact the SPX is only 8 points removed from being back above 1700.
• SPX reclaimed the 10 and 50-day moving averages and finished just 0.03 above the 20-day moving. 
• We are slightly off of oversold conditions. 
• There may be clear skies for the SPX for a temporary run while fear of “default” is lifted for a few weeks. 
• The fact that the long-term trend-line was reclaimed was amazing to me. However SPX needs to provide some follow through to reassure traders this isn’t some dead-cat bounce. 
• Key for bears is to take price back below 1685 which would take price back below the risking trend-line off of the November 2012 lows. 
• We’ll need to see a +20 point rally for us to see any real challenges of technicals barriers broken in recent days including the 50-day moving average. 
• A move below 1627 would mark a new lower-low in the market and confirm a downtrend for the first time since the November 2012 lows were established. 
• Volume remains on par. 
• VIX was crushed yesterday dropping 16% to 16.48. 
• 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 GNW yesterday at 12.82. 
• Covered CX at 10.87 for a 1.4% gain. 
• Covered TIF at 76.24 for a 0.2% loss. 
• Covered STT at 66.64 for a 1.2% loss. 
• Will stay away from the short-side of the trade as long as Congress nears a short-term deal on the debt ceiling and/or budget. 
• Currently 20% long / 80% cash.  
• Current Longs: CSE at 11.86, GNW 12.82.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: