Our markets continue to be held hostage to any kind of news or rumor coming out of Europe. Markets traded lower this morning based on a report that Moody's has put France on negative credit watch. Later in the morning, there were positive reports about Germany and France cooperating to make the debt bailout a certainty - but, again, no specifics. But this news encouraged traders and the market rallied throughout the day, but then the earlier news reports were called into question, so the trading became very choppy in the last hour. It is hard to predict where the markets may go tomorrow. SPX tacked on $29 to close at $1230 and RUT closed at $709, up $21. Today's move returns SPX right to the resistance level set earlier in September - tipping point. Trading volume spiked up today with 3.9 billion shares of the S&P 500 trading today; this is slightly above the 50 dma at 3.8B. Trading volume was up 22% on the NYSE and increased 15% on NASDAQ.

My Oct iron condor on RUT stands at a P/L of +$96 with delta = -$90 and theta = +$1,000. The 740/750 call spreads are right at one standard deviation OTM. I tried to close them this morning, but was unable to get a good price before the market rally took over. The Nov condor stands at a P/L of +$60 with delta = -$51 and theta = +$155. So we sit back and watch to see what news report or rumor sends this market soaring or diving tomorrow.