Encouraging news out of Europe helped push stocks higher today, but the rally ran out of steam in the afternoon as key resistance levels were hit. SPX closed at $1207, up $12 and RUT gained $11 to close at $700. Trading volume was up with 3.6 billion shares of the S&P 500 stocks trading today; trading volume was up 18% on the NYSE and was up 19% on NASDAQ. Take a look at the SPX chart; it is remarkable how the SPX price hit resistance at $1220 and pulled back. This is the high end of the trading range we have been in since early August. The question on everyone's mind is whether it can break through $1220 and spark a continued rally higher.

The VIX pulled back to the lower end of its recent range at 30%, but then pulled back to close at 31%. This makes the fourth time the VIX has dropped down to about 30% and then popped back upward as the market reversed back into the trading range.

The talking heads on CNBC appeared to be obsessed with the Dow closing in on its opening level for 2011 earlier today, but the S&P 500 is a much better measure of the overall market and we are far from the January opening of $1260. The SPX remains underwater by over 4% for 2011.

My Oct iron condor on RUT stands at a P/L of -$1104 with position delta = -$100 and theta = +$397. The Nov condor stands at a P/L of +$200 with delta = -$53 and theta = +$104 (both are 20 contract positions). The theta/delta ratios on both positions are strong, but the call spreads in both positions are beginning to be pressured as this rally continues. Unemployment claims come out in the morning. It will be interesting to see if we pull back into this trading range or seek new highs tomorrow.