Pre-market update (updated 9am eastern):

• European markets are trading 0.8% lower.
• Asian markets traded mixed between -0.2% up to +1.3%.
• US futures are trading flat ahead of the opening bell.

Economic reports due out (all times are eastern): Jobless Claims (8:30am), PMI Manufacturing Index Flash (8:58am), FHFA House Price Index (9am), Existing Home Sales (10am), Philadelphia Fed Survey (10am), Leading Indicators (10am), EIA Natural Gas Report (10:30am)

Technical Outlook (SPX):

• Quiet day of trading until the Fed buoyed the markets higher with its FOMC Statement. 
• Yesterday’s rally nearly took out all of the weakness from the previous three days of trading. 
• The volume on yesterday’s rally was much weaker than in previous days where the market sold off. 
• The fear in the market dropped off quite a bit going back down into the 12’s again. 
• We haven’t seen dead cat bounces at all after sell-offs in the market (if you want to call these slight pullbacks a sell-off). Instead, after the Friday day the market it rallies, it is an entry point to get back into stocks to the long side. 
• I don’t recommend using dead cat bounces as an opportunity to reload your short positions.
• Market is starting to become rumor driven yet again – this time surrounding the country of Cyprus.
• The nearest  short-term support level for this market lies at 1514. 
• Ideally, we are still in need of a more sustained pullback to 1500-1510 level simply for the reason, that it would once again bring stocks back to a place with more ideal setups and opportunities for trading. 
• Also the amount of margin being used to buy stocks are at levels that historically have led to notable reversals in the market. 
• SPX remains extremely overbought in the short-term. 
• 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:

• Covered PETM at $62.33 for a 0.2% gain. 
• Covered RCL at $32.56 for a 3.0% gain. 
• Covered TRW at $58.96 for a -1.2% loss. 
• Bought CY at $11.40.
• Remain Long SLV at $27.97
• Remaining patient at these elevated price levels – not going to force position that aren’t there. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: