You could have made a lot of money this past year or so, simply by buying the dips on the major market indexes. And it happened once again this morning. One of these days, it won't work, and then it gets ugly. SPX opened up weakly this morning and traded lower for about the first hour of the session, but then started higher and ended up gaining $7 on the day to close at $1996. RUT behaved similarly, only its low for the day broke its 50 dma. RUT closed up $6 at $1165. Volatility spiked upward this morning with the VIX moving over 14%, but then it settled back as the market recovered, closing at 12.9%, down 0.6 points.

No significant economic data were released today. We will see the weekly unemployment numbers tomorrow, but they aren't likely to move the market.

The SPX hit a peak near $1990 in late July and that level appeared to be holding as a solid support level until yesterday when SPX closed at $1988. When SPX opened and traded down to $1983 this morning, I think many traders paid close attention (I know I did). But then the same old "buy the dip" thing happened once again. RUT continues to trade more weakly than the broad market, as represented by SPX, and that concerns me. One can certainly make the case that some sideways chop for a few weeks will return most valuation measures back closer to historical averages. But I fear that one of these days, the bulls won't be there to buy the dip...