Brief Recap and Updates on the MarketsSPY Charts and some Technical AnalysisIn Monday's action:Stocks had a big rally on Monday as traders seem to believe the U.S. is winning the trade war or it will not be as bad as first thought.News to keep in mind Tuesday morning: Markets are higher in pre-market tradingAt 7:50am ET - Dow futures vs fair value: +76.00. S&P futures vs fair value: +6.75. Nasdaq futures vs fair value: +22.75.The VIX is down over 2% in pre-market tradingKeep an eye out for any trade war headlinesToday's Economic Calendar 6:00 NFIB Small Business Optimism Index8:55 Redbook Chain Store Sales10:00 Labor market condition index1:00 PM Results of $33B, 3-Year Note AuctionThe SPY charts are pictured below. The first is a 3-month chart followed by a longer-term 9-month chart. We have broken above the 278 level in pre-market trading. To me the rally seems overdone, so we are using caution and not going to chase the market. The MACD lines are turning positive and are crossing up. The Stochastics have been rising and are almost overbought. The Money flow is currently a slight positive for the markets. This mornings pre-market activity points to a higher open. The market seems to be thinking the trade war will get settled and all is well. I am not that certain and still see some risk. We maybe seeing a run-up into earnings season, that may lead to "but the rumor - sell the news" scenario. We will continue to use some caution buying the dips and also selling the rips.In the longer term chart, we are still marking a trading range of 270-280. We would add to positions at the bottom of this range or take some profits at the top of this range.* - I do not see the 280 level on the SPY being broken. - *Nasdaq Composite +12.4% YTDRussell 2000 +11.0% YTDS&P 500 +4.1% YTDDow Jones Industrial Average +0.2% YTDDisclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments. With our Daily Trackdowns, additional analysis/observations during the trading day in the comments by us or our readers.