Markets traded largely sideways until early afternoon when news of the Italian Prime Minister's resignation boosted stocks going into the close. SPX gained $15 to close at $1276. RUT followed with a $10 gain to close at $755. Trading volume was basically flat to slightly upward from yesterday with 2.9 billion shares of the S&P 500 stocks trading today. Volume on the NYSE was up 13% and trading volume was up 8% on NASDAQ.

SPX broke out of the old trading range on October 23rd and has been able to hold that support level at $1220 since then. This is evidence, in my opinion, of the underlying bullish nature of this market. But I would be cautious about predicting the beginning of a bull market. Any unexpected news or rumors out of Europe could easily send this market back down. We are now approaching the highs set a few days ago at $1285. Breaking through $1285 would be a key bullish signal.

Minimal economic data has been reported thus far this week. Unless the unemployment claims or PPI data later this week are surprising, the focus will remain on Europe.

The VIX dropped to 28.5% today, suggesting institutional investors are becoming more bullish. But the modest trading volume would suggest they are tentative about jumping into this market.

My Nov RUT condor stands at a P/L of -$2,060 with delta = -$111 and theta = +$462. The Dec condor stands at a P/L of -$920 with delta = -$54 and theta = +$105.