Pre-market update:

• European markets are trading 0.3% higher. 
• Asian markets traded 0.1% lower.
• US futures are trading flat

Economic reports due out (all times are eastern): Producer Price Index (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• A new higher high was formed yesterday in a most convincing manner, and officially ended the downtrend off of the 5/22  highs. 
• We have finished higher for six straight days. Very rarely will a market continue to trend higher without first a pullback. 10 out of the last 12 have finished in the green and during that time the SPX has rallied 100 points. That’s huge!
• The theme of this market right now is not bullish/bearish but overextended. You have to be careful in these scenarios, because, the market needs a pullback/retracement, just to keep the rally healthy. 
• Volume has been relatively light throughout the rally. 
• No divergence in the VIX – it rests ast 14.
• Yesterday’s move has the SPX creeping outside the upper Bollinger Band, which tends to slow things down some. 
• Careful to note all the gaps that have formed on this uptrend off of the lows of 6/24. More times than not a market will ultimately come back and fill those gaps. 
• 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. 

My Opinions & Trades:

• Closed GOOG at 920.30 from 872.67 for a 5.5% gain. 
• Added BDX at 99.98 yesterday. . 
• Current Longs: CME at 76.53, VZ at 51.33, SJM at 104.63, AAPL at 422.30
• I’ll look to add 1-2 new positions today. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: