Pre-market update (updated 8am eastern):

• European markets are trading 0.1% higher.
• Asian markets traded trading 0.7% higher. 
• US futures are slightly lower. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), Producer Price Index (8:30am), Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Industrial  Production (9:15am), Housing Market Index (10am), E-Commerce Retail Sales (10am), EIA Petroleum Status Report (10:30am)

Technical Outlook (SPX):

• SPX broke out of the previous 4-day trading range it had been stuck in. 
• Volume was higher than usual and I expect to see some follow through today. 
• Typically when we have had a strong push higher this year, we have seen a respectable follow through that pushes prices higher the next day as well.
• This is even more so when it comes in conjunction with a breakout at the same time. 
• Traders will point at the fact that we are overbought but we have been since April – nothing to see there. 
• We have traded above the 10-day moving average for 16 straight sessions, which is a great sign of strength. 
• 15 out of the last 18 sessions has resulted in a bullish move for the SPX. Futile to try to call tops on this market right now… let the price action come to you. 
• I don’t mind adding more positions to the portfolio at these levels, but while I do that, I am tightening my stops in my existing positions to protect profits and reduce exposure. I recommend you do the same if you are going to increase your exposure. 
• Essentially, the market has previously been working off overbought conditions via intraday pullbacks. 
• A lot of the real estate that the Bollinger Bands were providing for a push higher has been used up. Going into today, there is a about 14 points to work with before you need to become cautious of your long exposure. 
• If it were up to me, I’d like to see the SPX pullback over multiple days to the 1600 level. 
• 30-minute charts shows an overextended market but with support at 1634. 
• As long as the SPX doesn’t break 1580, any pullback we experience should be just fine and keep the bullish sentiment in place. 
• A push above the upper Bollinger band would likely result in a climatic top. 
• We are up seven straight months, the last time we saw such a rally was when the market bottomed in 2009. 
• 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. 
• 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. 
• We haven’t seen a market pullback in excess of 4% since October/November time-frame. 

My Opinions & Trades:

• Busy day on Monday:
• Added CMG at $374.07 yesterday. 
• Added AAP at $86.07 yesterday. 
• Will probably look to do the following: Close out 1-2 new positions and tighten my stop-loss on remaining ones. 
• Remain Long RLGY at $48.49, JCI at $35.22, GRA at $79.03, SLB at $77.03, WOOF at $24.40, DG at $52.75.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: