Pre-market update:

• Asian markets traded 1.2% higher.
• European markets are 0.4% lower. 
• US futures are trading flat ahead of the market open. 
  

Economic reports due out (all times are eastern): Industrial Production (9:15), Pending Home Sales (10), Dallas Fed Manufacturing Survey (10:30)

Technical Outlook (SPX):

• SPX pushed higher on Friday to close at all-time highs yet again. 
• Technically Friday’s push higher takes the SPX out of the 3-day consolidatoin area and begins the second leg of the rally off of the October lows. 
• Volume the last two days in the market have been extremely low, and likely part of the reason there was little enthusiasm by the bulls from the rally itself. 
• Overnight, Futures has sold off 10 points off its highs. 
• If there is any selling going forward over the course of the next week, the bulls must make sure they hold the 1740 level. 
• If that happens, expect a larger pullback in equities. 
• The 30-minute head and shoulders pattern on the SPX that I mentioned last week has been officially disolved with Friday’s rally
• VIX remains near the low end of its range at 13.09. 
• After Wednesday’s sell-off, I’m guessing that the SPX is entering into a second and final leg before another September-like pullback. These second legs tend to last 5-8 days. But let the price action come to you. Don’t front-run it. 
• The bias in this market is still to the upside and should be traded accordingly. 
• Very little in the way of head-winds for the market as Syria has left the spot-light, shut-downs, debt-ceiling are over with for now, and the most dovish Fed chairman poised to take the helm. 
• 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 on Friday. 
• No closed out positions. 
• Maintained all 6 positions while tightening their stop-loss. 
• I am primarily focused on trading to the long side going forward. Will likely look to add more long exposure today. 
• Currently 60% long / 40% cash.  
• Current Longs: LYV at 18.80, MWE at 70.20, GES at 30.96, LPX at 17.87, POR at 29.23, PRU at 81.04.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: