Pre-market update (updated 8am eastern):

• European markets are trading in a mixed/flat manner. 
• Asian markets traded 0.3% lower. 
• US futures are slightly lower. 

Economic reports due out (all times are eastern): Jobless Claims (8:30am), Wholesale Trade (10am), EIA Natural Gas Report (10:30am)

Technical Outlook (SPX):

• We finished higher for a fifth straight day yesterday .
• We continue to trade consistently just below the upper Bollinger band, which is exactly what you want in a rising market.
• A push above the upper Boliinger band would likely result in a climatic top. 
• We are seeing extreme overbought conditions on the SPX short-term. 
• For determining short-term weakness, I will watch the 10-day moving average at 1607, and a break below the MA would indicate a short-term shift in market sentiment. 
• Volume saw a notable pickup yesterday. 
• Breadth in the market wasn’t all that great despite the solid index gains. 
• We are up seven straight months, the last time we saw such a rally was when the market bottomed in 2009. 
• I ultimately think that there is a strong possibility of us finishing the month of May in the red. 
• VIX experiencing some ‘lackluster-ness’ at 12.7. 
• Continue trading to the long side while the bullishness continues. No need to try to call a top on this market when it shows no desire to do so. Don’t try to be a hero in your trading. 
• I would be careful at these levels about adding additional exposure to the long side. 
• 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. 
• 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. 
• Will likely close out 1-2 new positions today. 
• Won’t rule out add any new positions either, but overall I want to have less exposure than what I came in with today. 
• Will tighten my stops on the majority of my positions today. 
• Remain Long TXN at $36.02, TSCO at $107.62, RLGY at $48.49, JCI at $35.22, ADBE at $45.70, LNKD at $180.24
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: