Today's Trading Plan: Searching For A Higher High

• European markets are trading 0.7% higher.
• Asian markets traded 1.5% lower.
• US futures are trading 0.4% higher.

NFIB Small Business Optimism Index (7:30), ICSC-Goldman Store Sales (7:45), Redbook (8:55)

Technical Outlook (SPX):

• Huge day for the SPX yesterday as it managed to break through the descending trend-line off of the 5/22 highs.
• The next task at hand is to break through 1654 or the 6/18 highs, and by doing so, the market would put an official end to the sell-off by establishing a higher-high.
• Volume has picked back up and was as high as I've seen it since the end of June.
• I'm somewhat concerned yesterday by the lack of movement out of the VIX and how it barely finished in the red.
• Watch the rising SPX trend-line off of the 6/24 lows. A move below 1624 would not be good, at least not until we break above 1654 first.
• Heading near short-term overbought territory. I will also be providing a fresh reading on the SharePlanner Reversal Indicator today as well.
• Some resistance on the SPX 1647 level for the 30-minute chart.
• SPX shows clear breakout above the fray and consolidation that has taken place since 6/27. There is a strong likelihood that this market will continue to rally.
• The one thing you are not seeing that typically accompanies a major market sell-off is continuous bad news coming out. We had the FOMC Statement and that has been it.
• I simply do not think the bears can keep driving this market lower without some form of a catalyst besides the tapering comments made before by the FOMC.
• 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.

• Closed V at 192.30 from 182.15 for a 5.6% gain.
• Closed LPI at 20.60 from 20.28 for a 1.6% gain.
• Closed GS at 154.10 from 153.16 for a 0.6% gain.
• Added VZ at 51.33
• Current Longs:WLP at 80, GOOG at 872.67, BCR at 108.70.
• I'll look to add 1-2 new positions today.

Chart for SPX: