Pre-market update (updated 9am eastern):

• European markets are trading 1.1% higher.
• Asian markets traded mixed and -0.1% lower.
• US futures are trading moderately higher ahead of the opening bell.

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

Technical Outlook (SPX):

• Despite breaking above consolidation in a very decisive manner, the SPX ended up slipping back inside of the previous range it had been trading in. 
• I don’t consider this to be a major concern, and would look at it more from the view point that it is merely pullback back around to the break out level. 
• Use the 20-day moving average as a short-term gauge on the market’s sentiment as it has managed to trade above this MA since 2/26. 
• Volume dropped off mightily during Monday’s sell-off. 
• We continue to hover in overbought conditions. 
• It should be assumed that the uptrend has been resumed. 
• Because of recent consolidation, it won’t take much for the market to get outside the upper Bollinger Band if the SPX can string together a series of rallies. 
• 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. 
• VIX rose back up into the mid-13’s. 
• I don’t recommend using market bounces as an opportunity to reload your short positions at this time. 
• 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. 
• 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:

• Bought SODA at $50.30.
• Remain Long GG at $33.55, BWLD at $86.53, AAP at $81.66
• 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: