Technical Outlook:

• Ascending triangle remains broken despite a slight bounce on Friday. 
• Futures popping this morning on speculation of further easing in China. 
• Potential double top on the daily chart of SPX that confirms on a drop below 2040. 
• Typically the first day the market bounces after a large sell-off is much bigger than the one that we saw on Friday. Most importantly will be whether today’s strength can hold. If not, it will be a clear signal to short this market. 
• Volume dropped on Friday from what we saw on the previous two days. 
• VIX fell 4.6% down to 15.07. VIX continues to coil in a tighter and tighter range going back to October. 
• Despite many, many wild swings in the market day-in and day-out, the market is only up 0.1% as of the close on Friday. 
• 30 minute chart of SPX shows even more clearer a massive double top that is forming. 
• RUT nearing its year long breakout area from February at 1220. 
• RUT showing a much better bounce from Friday. 
• Watch and see whether SPX fills the gap in the early going of trading this morning, otherwise, it is likely to trade in the direction of the gap for the remainder of the day. 
• The last time SPX finished higher two straight days was back on 2/13,2/17. This long of a stretch  hasn’t been seen in over 20 years. 
• SPX has been down 4 out of the last 5 weeks, yet surprisingly VIX is still below 16!
• T2108 indicates that the selling may just now be getting started in this market as 44% of stocks still remain above their 40-day moving average. 
• Plenty of uncertainty remains in the market short-term. Euro and oil are major players in the market’s direction currently.
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Did not add any new swing-trades on Friday. 
  
• Sold KSS at 75.37 for a 0.2% gain on Friday..
• Sold UPRO at 131.5 for a 0.2% gain (day-trade).
• No positions
• 100% cash. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: