Pre-market update (updated 8am eastern):

• European markets are trading 0.3% higher.
• Asian markets traded 1.2% higher.
• US futures are slightly higher.. 

Economic reports due out (all times are eastern): Bernanke speaks (9:30am), Treasury Budget (2pm)

Technical Outlook (SPX):

• SPX experienced a much needed sell-off yesterday, snapping a five day winning streak, and only the third down-day in the last 15 trading sessions. 
• Additional weakness today, would not be at all a bad thing for these markets. Few setups  out there, and less and less stocks are participating in this market rally. 
• As long as the SPX doesn’t break 1580, and pullback we experience should be just fine and keep the bullish sentiment in place. 
• A push above the upper Bollinger band would likely result in a climatic top. 
• For determining short-term weakness, I will watch the 10-day moving average at 1610, and a break below the MA would indicate a short-term shift in market sentiment, but not necessarily a ‘down-market’.
• We are up seven straight months, the last time we saw such a rally was when the market bottomed in 2009. 
• I ultimately think that there is a strong possibility of us finishing the month of May in the red. 
• Continue trading to the long side while the bullishness continues. No need to try to call a top on this market when it shows no desire to do so. Don’t try to be a hero in your trading. 
• Markets don’t care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 
• Both channels (July October 2012) and the price channel we are currently in are very similar in nature. 
• We haven’t seen a market pullback in excess of 4% since October/November time-frame. 

My Opinions & Trades:

• Added GRA at $79.03 yesterday. 
• Closed TSCO at $110.95 for a 3.1% gain. 
• Stopped out of ADBE for a -3.2% loss at $44.24. 
• Will tighten my stops on the majority of my positions today. 
• Remain Long TXN at $36.02, RLGY at $48.49, JCI at $35.22, LNKD at $180.24
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: