Pre-market update (updated 8:30am eastern):

• Europe is trading 0.4% higher.
• Asian markets traded in a wide range from -0.6% up to +0.2%.
• US futures are slightly higher ahead of the open. 

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am)

Technical Outlook (SPX):

• Despite the historically positive gap-up on the first of the month, SPX instead sold off and eventually traded lower on the day. 
• Most notable, was the rejection at the 50-day moving average. 
• On SPY the price action turned the last two days into a bearish engulfing pattern. 
• 30-minute chart looks distributive. 
• Watch rising support at the 3-day EMA. 
• Overall, despite the pullback yesterday, the action looks orderly and without panic. 
• Stocks remain overbought in general and on the SPX. This can last a while, and does not necessarily mean that a pullback is imminent. 
• Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time. 
• Next level of price resistance rests at 1437. 
• Fiscal Cliff discussions continues to dominate the news. 
• SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
• SPX currently has recaptured the 10, 20, and 200-day moving averages. 
• VIX rose above 16.

My Opinions & Trades:

• Sold CIG at $11.87 from $12.26 for a -3.2% loss. 
• Bought LULU at $72.42. 
• I’ll be looking to add 1-2 new long positions to the portfolio today. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: