Pre-market update (updated 7:30am eastern):

• European markets are trading 0.2% higher but in mixed fashion.
• Asian markets traded 1.5% higher. 
• US futures are trading flat with a slight negative bias ahead of the opening bell.. 

Economic reports due out (all times are eastern): Consumer Sentiment (9:55am)

Technical Outlook (SPX):

• On increased volume yesterday, the market broke out of the four day consolidated area it had previously been trading inside of. 
• The upper channel provides resistance today at 1489 should we get to that level. It will likely stop any market rally from progressing further. 
• I’m becoming somewhat concerned by this market because now we have one very large gap and one smaller gap (formed yesterday) that has yet to be filled on the SPY. 
• Since 1/3 the SPX has been trading in overbought territory. 
• I don’t think the bulls want to see this market pullback beyond 1466 before popping higher again, but absolutely it needs to stay above 1451. 
• 30-minute chart confirms the breakout quite nicely. 
• VIX actually moved higher yesterday, but still in the 13’s. 
• Of late, there have been quite a few market rallies/sell-offs in the last hour of trading, much like what we saw yesterday and Friday.
• Notice the channel that we are currently trading in, off of the November lows (see chart below).
• There’s really no significant level of resistance for the market above 1466 until you get to 1501. 
• It will take a significant move, but below 1398, the trend will be very bearish. 
• Be aware of upcoming news events and discussions that will permeate the markets: Debt Ceiling Debate, Fiscal Cliff Part II, Employment Recovery. 

My Opinions & Trades:

• No new trades yesterday. 
• Remain Short TEVA at $38.10 and Long VMC at $53.35, WCC at $68.24, BG at $75.11, LO at $39.16, UAL at $26.05.
• Stop-Losses have been updated for a number of positions.  
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: