Pre-market update (updated 8:30am eastern):

• Europe is trading 0.2% higher.
• Asian markets traded 1.3% higher.
• US futures are slightly higher ahead of the open. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), ADP Employment Report (8:15am), Productivity and Costs (8:30am), Factory Orders (10am), ISM Non-Manufacturing Index (10am), EIA Petroleum Status Report (10:30am)

Technical Outlook (SPX):

• We continued to pullback for the second straight day after the rejection on the 50-day moving average. 
• Rising support at the 8-day EMA has held quite nicely over the last month. It’ll be interesting if the same happens yet again today. 
• We are retesting the neckline of the triple-top on the SPX daily. Heavy resistance at this level for now. 
• We are off of overbought conditions in the short-term. 
• Volume remains stable. 
• On SPY the price action turned the last two days into a bearish engulfing pattern. 
• 30-minute chart looks distributive. 
• Overall, the two-day pullback looks orderly and without panic. 
• Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time. 
• Next level of price resistance rests at 1437. 
• Fiscal Cliff discussions continues to dominate the news. 
• SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
• SPX currently has recaptured the 10, 20, and 200-day moving averages. 
• VIX rose above 17.

My Opinions & Trades:

• Sold LULU at $70.59 for a 2.5% loss. 
• Bought VRX at $56.14. 
• I’ll be looking to add 1-2 new positions to the portfolio today. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: