Pre-market update:

• European markets are 0.8% higher. 
• Asian markets traded 0.4% higher.
• US futures are trading 0.4% higher.  

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

Technical Outlook (SPX):

• After a three day run, the markets pulled back ever-so-slightly on Friday, which should provide the bulls with a nice breather. 
• The only downside to Friday’s move is that it pushed price back below 1608 and also below the 10-day moving average. 
• With moderate gap ups like we are seeing this morning, it is imperative, that the bulls don’t let those gains slip away within the first hour, otherwise they can result in extremely bearish days. Hold the first hour gains, and more than likely the day should be a solid winner for the bulls. 
• Volume was strong on Friday, but primarily due to typical end-of-quarter trading activity
• 30-minute chart shows consolidation over the past two sessions. 
• VIX remained even at 16.86. 
• 1608 needs to be reclaimed today, otherwise, there will be a doubt casted on this market going forward. 
• June marked the first negative trading month since October 2012. It marked the end of seven straight green months. 
• I do think though this bounce has some legs to it, and expect to see an extended run. 
• The one thing you are not seeing that typically accompanies a major market sell-off is continuous bad news coming out. We had the FOMC Statement and that has been it. 
• I simply do not think the bears can keep driving this market lower without some form of a catalyst, besides the tapering comments made before by the FOMC. 
• The more the SPX rises the more fear it will strike in the bears, which result in more covering out of fear of losing their gains from last week. 
• We have now established a lower-high and lower low for the first time in this market for 2013. 
• 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:

• No new positions added to the portfolio today. 
• Current Longs: PCYC at 80.56, WLP at 80, CME at 76.35, GS at 153.16, LPI at 20.28
• I will 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: