SPX challenged its resistance level at $1850, but pulled back to close at $1844, up $5 on the day. But RUT broke out to a new all-time high at $1176, up $7. Trading volume is down a bit from Friday, but remains above the 50 dma with 2.5 billion shares of the S&P 500 trading today. Trading volume dropped 12% on the NYSE and decreased 8% on NASDAQ. Volatility remains low with the VIX at 12.9%, although the VIX spiked up to 13.4% this morning and then pulled back.

OTM index put volume is increasing, suggesting some institutional hedging of their portfolios just in case the often predicted correction actually occurs. If the markets continue to trade sideways, we may successfully blow off some of the excess without a lot of damage. RUT's strong push higher today was certainly a sign of bullish strength.

Today was a light day for economic data, and the balance of the week doesn't have any significant reports scheduled, unless you count the weekly unemployment claims. But those weekly reports don't often move the market.