Pre-market update:
- Asian markets traded 1.4% lower.
- European markets are trading 0.6% lower.
- US futures are trading 0.1% higher ahead of the market open.
Economic reports due out (all times are eastern): Consumer Price Index (8:30), Jobless Claims (8:30), PMI Manufacturing Index Flash (8:58), Philadelphia Fed Survey (10), Leading Indicators (10), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11)
Technical Outlook (SPX):
- An attempt to make new highs on SPX yesterday was rebuffed and resulted in the biggest sell-off since 2/3.
- Two support levels to watch to day are 1825, 1809. The latter of which should result in more bears coming to the table to short this market.
- When testing significant resistance like we did yesterday at the all-time highs, I always consider it to be a bad sign if, when unable to break through, we sell-off instead of consolidate. It often indicates there is a lack of fire power to push price through.
- As a result, it is key for the bulls to hold the lows from yesterday and show at least a small bounce following yesterday's sell-off.
- VIX shot back hard into the 15's yesterday.
- Volume was also noticeably higher compared to recent days.
- Some distribution seems to be taking place on the 30-minute SPX chart.
- The biggest technical support level is the strength SPX found from the trend line that started off of the August '13 lows.
- 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.
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My Opinions & Trades:
- Closed MTW yesterday at $28.98 for a 3.1% gain.
- Closed HAR yesterday at $103.09 for a 1.8% loss.
- Added one short position yesterday.
- Remain long SLB at 90.48.
- Will consider 1-2 new positions based on market conditions.
- Long 10% / Short 10% / Cash 80%
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
