Pre-market update (updated 9am eastern):

• European markets are trading -0.6% lower. 
• Asian markets traded mixed and -0.2% lower. 
• US futures are trading slightly lower ahead of the opening bell. 

Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30am), Personal income and Outlays (8:30am), Jobless Claims (8:30am), Employment Cost Index (8:30am), Chicago PMI (9:45am), EIA Natural Gas Report (10:30am)

Technical Outlook (SPX):

• The SPX sold off the most in 2013. A whopping six points. 
• Watch the 1494 level which represents the 10-day moving average. We have traded and closed above the 10-day moving average for 21 straight days. 
• A pullback to 1470 would actually be a very healthy pullback area for this market and would help to cool the market off some before pushing back higher again. 
• If we finish below 1502 tomorrow, we’ll have our first negative close on the SPX on the weekly chart in four weeks. 
• The short term stochastics has us coming off of oversold levels.
• VIX continues to climb 5 out of the last 6 trading sessions which is negative. 
• Watch the dip-buyers, if they don’t try to come in today to prop the market up, we could see a significant sell-off. 
• So far, this January is the best we’ve seen since 1994. The best January in 19 years. 
• Be very careful about adding long positions to your portfolio today. This market is at major extremes on every noteworthy indicator. 
• The last three times we were this overbought on the weekly chart, the following weeks we saw anywhere between a 2-4 week pullback in the markets. 
• T2108 posted in the Market Group shows a market that has only been this ‘overbought’ a few times in the past three years. 
• At 1451, you have a significant inflection point for the markets. If the market pulls back and price dips below this price level, there is a significant gap to fill (on the SPY) and will likely see a push below 1430. 
• The channel that we are currently trading in looks very similar to the channel that we traded in last year from June through September. 
• Be aware of upcoming news events and discussions that will permeate the markets: Debt Ceiling Debate, Fiscal Cliff Part II, Employment Recovery. 

My Opinions & Trades:

• Added GLW as a short yesterday at $12.04
• Covered HDB yesterday at $40.68 for a 0.1% gain. 
• Remain Long INGR at $67.72. 
• Remain Short TGT at $61.03, HDB at $40.71, GM at $28.44.
• May add a new short position if we can get some renewed weakness in the market today. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: