The broad market indexes tacked on another positive day and managed to get trading volume up to recent averages. SPX closed at $1307, up $11 and RUT gained $3 to close at $820. The SPX tried hard to get to $1310, but could not manage it. It hit $1309 twice, but pulled back each time. Many analysts are viewing $1310 as "the line in the sand" defining the end of the correction and resumption of the bull market trend. Pending home sales rose 8.2% in May, quite a contrast with the 11% decline in April. The VIX pulled back to 17.2%, somewhat encouraging for the bulls. The RUT candlestick was the classic doji, the sign of indecision and a possible turning point. But SPX had a strong bullish day. This three day rally may be due to institutional buying and selling at the end of the quarter; if that is the case, the market's move on Tuesday after the holiday will be interesting. Trading volume was up from yesterday, but trading in the S&P 500 was simply up to the 50 dma. Trading on the NYSE was up 15% and trading was up 7% on NASDAQ.

My July iron condor on RUT continues to grind out its gains with a net profit at this point of $2,820 with delta a modest +$12 and theta a substantial $122. Condors are fun at this point - unlike the times when you only established the trade a week ago and you are already scrambling to adjust the position to avoid being run over. The Aug condor position stands at a P/L of +$860 with delta = -$49 and theta = +$71. This condor is "muddling along" at this point: not in a great position, but not sufficiently stressed to be adjusted either.

Check out our free webinar this evening. I will be discussing trading the iron condor in bear markets. Webinar attendees will receive a $100 discount on my new course, Delta Neutral Options Trading, that will begin next week.