Pre-market update (updated 7am eastern):

• Europe is trading 0.7% higher.
• Asian markets traded in a wide range from -1.2% up to +0.6%.
• US futures are moderately higher ahead of the open. 

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

Technical Outlook (SPX):

• Another day of consolidation below the 50-day moving average on SPX. 
• Most importantly on the price action is that it is not being rejected at the 50-day MA – just settling below it for now. 
• Today’s gap open should put price action right at, or above the moving average. 
• Volume was strong on Friday, but most likely due to end of month window dressing. 
• Stocks remain overbought in general and on the SPX. This can last a while, and does not necessarily mean that a pullback is looming. 
• 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. 
• Over the last 10 trading sessions, the market has rallied strong and not provided a much needed pullback/lhigher-low. 
• First days of the trading month tend to be overly bullish. Expect the same today. 
• Note the support at the 8-day exponential moving average for this market. Rising support is currently at 1404. 
• Next level of 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 dropped to 15. 

My Opinions & Trades:

• Added CIG at $12.26.
• 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: