The markets opened up a bit this morning but then traded sideways and downward for the balance of the day. The last hour of trading saw a resurgence of buying that brought the averages back near their starting points. SPX closed unchanged at $1333 but RUT set a new high at $849, up $3. Trading volume was way down with 2.5 billion shares of the S&P 500 stocks trading today. Today's trading volume, together with trading on March 28, are the lowest trading levels this year. Today was a slow day for economic news and that may have contributed to the sluggish markets. The VIX increased a bit to close at 17.5%. I have seen several reports of money is flowing into equities, but we have had very few strong volume days; a lot of funds must be carrying large cash balances. At best, this is a nervous bull market; at worst, it is a market on the edge of reversal.

The adjustments on my May iron condor on RUT are working well, holding our losses to a minimum while we wait out this market. Our position now stands at a P/L of - $580, delta = -$16 and theta = +$41. We will eventually be forced to either roll our call spreads upward or remove our hedge positions. But, in the meantime, we are buying time to see which trend develops.