Pre-market update:
- Asian markets traded 1.9% higher.
- European markets are trading 0.7% higher.
- US futures are trading 0.5% higher ahead of the market open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7), Housing Starts (8:30), Industrial Production (9:15), EIA Petroleum Status Report (10:30), Janet Yellen Speaks (12:15), Beige Book (2)
Technical Outlook (SPX):
- One of the wildest trading days of the year that saw the market open and continue on the rally from yesterday, only to give it all back up at 1844 and proceed down to 1816, and then rallied back to 1842 at the close.
- Much of the rally was short squeeze induced.
- Key resistance was broken at 1840 today.
- Also watch 1847 today as it represents the descending trend-line off of the April highs.
- 1873 is the ultimate resistance level to break.
- 30 minute SPX chart shows a triple bottom in place.
- If SPX's Friday lows are broken expect 1790 of the rising trend-line off of the August lows to be tested.
- Volume continues to come in strong on each sell-off.
- The Market doesn'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 one additional short position yesterday.
- Did not close out any positions yesterday.
- Will look to add 1-2 new positions today.
- Remain short MTW at 30.66, DOW at 48.30, KORS at 88.32, KAR at 29.73.
- Short 50% / 50% Cash.
