Pre-market update (updated 9am eastern):

• European markets are trading 0.7% higher. 
• Asian markets traded -1.8% lower.. 
• US futures are trading moderately higher, ahead of the bell. 

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), ISM Non-Manufacturing Index (10am)

Technical Outlook (SPX):

• Major reversal action on the SPX and broader market that wiped out Friday’s huge gains and more. 
• SPY exhibited a bearish island reversal pattern, that makes me concerned about getting long in this market. 
• We closed below the 10-day moving average for the first time in 25 days. 
• Volume on the SPX was unimpressive
• 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. 
• Quickly approaching short-term oversold territory, but will likely take a few more days of bearishness to get there. 
• Biggest leap in the VIX that we’ve seen this year – up almost 14% to 14.7. 
• There was a notable absence of dip-buying for the first time all year. A very ominous sign. 
• 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. 
• Be very careful about adding long positions to your portfolio today. This market is at major extremes on every noteworthy indicator. 
• The channel that we are currently trading in looks very similar to the channel that we traded in last year from June through September. 
• Be aware of upcoming news events and discussions that will permeate the markets: Debt Ceiling Debate, Fiscal Cliff Part II, Employment Recovery. 

My Opinions & Trades:

• Shorted UAL at $24.11. 
• Remain Short 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: