Pre-market update (updated 9am eastern):

• European markets are trading -1.2% lower.
• Asian markets traded mixed and flat.
• US futures are moderately lower of the bell. 

Economic reports due out (all times are eastern): Producer Price Index (8:30am), Retail Sales (8:30am), Consumer Sentiment (9:55am), Business Inventories (10am), Bernanke Speaks (12:30pm)

Technical Outlook (SPX):

• Big statement yesterday by SPX pushing higher and following through on the previous day’s breakout day. 
• The entire day’s candle body was outside of the upper Bollinger Band, which tends to be problematic and often times results in a pullback of some type. 
• Any pullback that holds 1564 is a healthy one. 
• 1542 represents the rising, lower channel band. As long as that rising level is not violated the trend thereby remains intact. 
• 1600 is a psychological level, that will likely provide some form of resistance in trying to break. 
• Volume was a bit lower of late but of no major concern. 
• Despite the huge rally, VIX has dropped off only marginally. 
• Overbought short-term. 
• A sell-off today will not concern me today, and should be deemed an opportunity to get in on a stock at a reduced price. 
• The good thing about reaching new highs for the bulls, is that there is little in the way of price resistance. Though rising support levels can exist. 
• Be careful of holding stocks that are overextended in their price movements. Best way to determine this is by using Bollinger Bands and monitoring the stock’s behavior once it get’s outside the upper band. 
• Typically I sell a stock if historically, it tends to sell off once it goes outside the upper band. 
• Any close below 1538, would breakdown the market below the consolidation level and usher in a new wave of bearishness.
• 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:

• Sold CRI yesterday at 60.87 yesterday for a 4.4% gain. 
• Sold ENI yesterday at $19.28 for a 0.6% gain. 
• Sold BSX yesterday at $7.65 for a 2.4% loss. 
• No new trades yesterday. 
• Remain Long ROK at $87.75, MA at $531.40, BWLD at $87.95
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: