Pre-market update (updated 9am eastern):

• European markets are trading 0.4% lower.
• Asian markets traded mixed and 0.5% higher.
• US futures are trading slightly higher ahead of the opening bell.

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

Technical Outlook (SPX):

• Solid bounce back yesterday, though the Russell really was a huge drag on the market. 
• Volume picked up ever so slightly. 
• By pushing higher yesterday, the SPX held the breakout level achieved on Thursday, and shows every sign that it is willing to march forward. 
• Continue to watch the 20-day moving average as the SPX has managed to trade above it every day since 2/27. For now it should help with gauging this market’s short-term direction. 
• We are close to trading outside the upper Bollinger Band. 
• We continue to hover in overbought conditions. 
• It should be assumed that the uptrend has been resumed. 
• 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. 
• VIX fell back into the 12’s. 
• I don’t recommend using market bounces as an opportunity to reload your short positions at this time. 
• Ideally, we are still in need of a more sustained pullback to 1500-1510 level simply for the reason, that it would once again bring stocks back to a place with more ideal setups and opportunities for trading. 
• 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:

• Bought DISH at 38.23 yesterday. 
• Stopped out of GG at $32.73 for a -2.4% loss. 
• Remain Long BWLD at $86.53, AAP at $81.66, SODA at $50.30
• Remaining patient at these elevated price levels – not going to force position that aren’t there. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: