Pre-market update (updated 9am eastern):

• European markets are trading 0.4% higher.
• Asian markets traded 1.9% higher.
• US futures are slightly higher ahead of the bell. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), EIA Petroleum Status Report (10:30am)

Technical Outlook (SPX):

• The bounce continued on Tuesday, putting in its best performance of the past three sessions. 
• The SPX has rallied over 42 points off the lows established on Thursday last week. 
• Fake tweet by the AP about an explosion at the White House and injury to the President saw the SPX drop a quick 10+ points in a matter of minutes, then rebound completely after it became known it was fake. 
• While we could be due for a pullback, the possibility that we rally yet again today is very real. Rallies after a respectable sell-off tends to establish new highs and squeeze the bears more and more each time. 
• 1538 remains the key level for the bears to push this market below, while SPX managed to break the short-term resistance of 1574 yesterday that likely clears the way for a retest of all-time highs. 
• SPX well above its 10 & 20-day moving averages now. 
• VIX settled in under 14. 
• 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 TSCO at $111.65 for a 5.8% gain. 
• Bought VIP at $12.22 yesterday. 
• Will be looking to add 1-2 new long positions today. 
• Remain Long DISCK at $71.12, DISH at $38.10, DFT at $25.55.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: