Pre-market update:

• Asian markets traded 0.6% lower. 
• European markets are trading 0.2% higher. 
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Employment Situation (8:30) – not  happening due to “government shutdown”. 

Technical Outlook (SPX):

• Technical victory for the bulls yesterday in that they managed to hold the rising trend-line. Today’s its support rests at 1678. 
• This was the first major test in the most recent sell-off of the rising trend-line off of the November 2012 lows. 
• Found resistance at the 10 & 20 day moving averages that have converged together. 
• Broke the 50-day moving average which previously acted as support for three straight days. 
• The last five minutes of each trading session in the past week has resulted in some sharp spikes both higher and lower depending on the day. Be aware of this. 
• When you are down 9 out of the last 11 trading sessions, its hard not to fathom a scenario where we see a market bounce. 
• It’s a tough call in this market right now in determining where it wants to go. The SharePlanner Reversal Indicator is playing heavily into my trading strategy, and the signals it is giving off suggests that this market is heading lower in the near future. 
• A bounce can still push this market higher. But pushing above 1702 may be problematic. 
• Don’t rule out the possibility of a lot choppiness and consolidation going forward. 
• Volume remained average. 
• VIX rose up to 17.67 its highest level since late June.
• Long-term I don’t believe a government shutdown hurts the market on its own.
• If a compromise is reached, expect a significant bounce back. 
• Confirmed Head and shoulders pattern on the SPX 30-minute chart still in play. 
• 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:

• No new positions added yesterday. 
• I’m more interested at this point in thinning out my longs rather than adding to them. May also add another short position today. 
• Currently 70% long / 10% short / 20% cash.  
• Current Longs: RDC at 37.17, UHS at 73.85, MPEL at 31.59, CSE at 11.86, ITMN at 15.31, DKS at 53.87, GNW at 12.82.
• Current Shorts: STT at 65.83. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: