Pre-market update (updated 8:00am eastern):

• Europe is trading 0.4% higher.
• Asian markets traded 0.2% higher.
• US futures are slightly higher.

Economic reports due out (all times are eastern): FOMC Meeting Begins, NFIB Small Business Optimism Index (7:30am), ICSC-Goldman Store Sales (7:45am), International Trade (8:30am), Redbook (8:55am), Wholesale Trade (10am),  

Technical Outlook (SPX):

• SPX advanced for the fourth straight day. 
• The index did a good job of holding the 50-day moving average which previously acted as a strong layer of resistance previously. 
• There’s actually an inverse head and shoulders pattern forming on SPX daily chart that is close to confirming at 1422. 
• Volume has been trickling lower over the past four trading sessions, which coincides with the four-day rally. 
• We are close to being back in overbought territory in the short-term, but that isn’t an overly concerning development at this point. 
• We’ve also made new highs for the second straight session off of the November lows. 
• Gap ups in the market of late have been difficult to hold, and often times lead to moves lower overall. 
• Price action showing a downtrend off of the October highs was broken yesterday on SPX. 
• Current uptrend off of the November lows is steep, but not atypical for new rallies. Overtime the up-ward trend-line will flatten out some. 
• 8-day EMA continues to provide rising support for the markets in the short-term. 
• 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. 
• Fiscal Cliff discussions continues to dominate the news. 
• SPX currently has recaptured the 10, 20, and 200-day moving averages. 
• VIX closed at 16.

My Opinions & Trades:

• Bought AL at $22.70.
• Bought LULU at $73.01
• Remain long SIG at $54.01, EW at $91.01, and EVER at $14.91.
• I’ll be looking to add 1-2 new positions to the portfolio today. 
• Here is my real-time swing-trading portfolio and past-performance

Chart for SPX: