The markets opened weakly this morning but rallied strongly later in the day based on favorable news from Europe that plans were being formulated to handle the Greek debt crisis; however, no official press releases have confirmed that report. On the other hand, from a technical viewpoint, the major indexes had been testing the bottom of this trading range for the past three trading sessions. So, a bounce upward back into the trading range isn't too surprising. SPX gained $27 to close at $1163. RUT closed at $666, up $13. Trading volume dropped with 3.5 billion shares of the S&P 500 stocks trading today; volume also dropped on the NYSE with a 26% drop, but traded flat on NASDAQ.

New home sales for August came in at 295k, down slightly from the previous month's 302k. The Case Schiller Home Price Index comes out tomorrow and will be another measure of the state of the ailing real estate market.

My Oct iron condor position on RUT only consists of the 500/510 put spreads. As RUT strengthens, I will re-establish my OTM call spreads to complete the condor position.

The fear and anxiety in the markets has certainly not disappeared. So, don't let today's rally make you complacent. Between the Euro debt crisis, fears of a global recession and our own Washington debt squabbles, this market can turn on a dime at a moment's notice.