Pre-market update (updated 9am eastern):

• European markets are trading -1.1% lower. 
• Asian markets traded 1.6% higher.
• US futures are trading moderately lower, ahead of the bell. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), Treasury Refunding Announcement (9am), EIA Petroleum Status Report (10:30am), Treasury STRIPS (3pm)

Technical Outlook (SPX):

• Another day of reversing from the previous day. We finished yesterday up more than 1% on the day. 
• The reversals that happen day-after-day is very similar to the reversal pattern that formed off of the August lows back in 2011 over a four day period. A very weak day in the markets will confirm the action. 
• Key price level for the bears is at 1494-5. 
• SPX regained the 10-day moving average as well. 
• Respectable sell-off at the close yesterday. 
• 30-minute chart on the SPX shows a potential double-top that might be forming. Prior to this, it has trended upward in near perfect fashion. 
• The gappiness in both directions at the top of a major trend is not a healthy sign for the market. We need to either close above yesterday’s highs or close below Tuesday’s lows to better understand the direction this market is wanting to take. 
• Volume was average yesterday. 
• Two support levels that I want to watch going forward are the 1468 and 1451 on the SPX. We aren’t quite there yet, but that is really the nearest support levels of significance. 
• VIX back into the 13’s. 
• Worries about European economies starting to re-emerge. 
• This past January was the best we’ve seen since 1994. The best January in 19 years. 
• The channel that we are currently trading in looks very similar to the channel that we traded in last year from June through September. 

My Opinions & Trades:

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• Remain Short UAL at $24.11, GLW at $12.04, Long SWHC at $8.66, DVA at $116.72
• Will likely add 1-2  new positions to the portfolio today. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: