Pre-market update (updated 9am eastern):

• European markets are trading 0.3% higher.
• Asian markets traded -1.2% lower.
• US futures are trading flat ahead of the opening bell.

Economic reports due out (all times are eastern): PMI Manufacturing Index (8:58am), Construction Spending (10am) 

Technical Outlook (SPX):

• Friday’s move was significant since the market managed to breakout of the previous consolidation range and make new highs in the process. 
• Now it should be assumed that the uptrend has been resumed. 
• Volume was also notably higher on Thursday as well, supporting the breakout. 
• With it being the first new trading day of the month and quarter, the markets tend to perform better and consistently higher on this day than any other. 
• Because of recent consolidation, it won’t take much for the market to get outside the upper Bollinger Band if the SPX can string together a series of rallies. 
• 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 dropped 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:

• Sold HOS on Thursday at $46.19 for a 2.8% gain. 
• Bought AAP at $81.66.
• Remain Long GG at $33.55, BWLD at $86.53
• 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: