Pre-market update (updated 9am eastern):

• European markets are trading mixed.
• Asian markets traded -0.6% lower. 
• US futures are trading slightly lower ahead of the opening bell.

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Rebook (8:55am), Treasury Budget (2pm)

Technical Outlook (SPX):

• SPX rose on Friday for the seventh consecutive session and nine out of the last ten. 
• We closed just below the upper Bollinger band, as the market continues to expand higher just below the upper resistance band each day. 
• Volume on the rise yesterday dramatically tapered offer and back to the levels we saw on Thursday. 
• Fear has completely escaped this market which puts investors, unknowingly in a very vulnerable position. 
• Also the amount of margin being used to buy stocks are at levels that historically have let to notable reversals in market action. 
• I’m looking for a pullback more than anything at this juncture and an opportunity for stocks to create more favorable setups to the long-side as a result. 
• We are extremely oversold in the short-term. 
• While we can still move higher from here, I believe there is far more risk over the next 2-3 days in doing so. 
• Significant bearish divergence on the T2108 as the market is putting in recovery highs, the T2108 (% of stocks trading above their 40-day MA) is significantly lower.
• The weekly chart shows a strong breakout in place. 
• VIX sold off hard yesterday and dropped back into the mid-11’s. 
• 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:

• No new positions added yesterday. 
• Closed out ADBE at $41.10 for a 5.7% gain. 
• Closed out LVS at $53.23 for a -3.1% loss. 
• Closed out TRI at $30.97 for a -3.4% loss. 
• Remain Long SLV at $27.97; Short ALXN at $91.65
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: