The markets bounced back strongly this morning based on positive news out of Europe, although most of it appeared rather tenuous. But the market was ready for some good news and the major indexes all posted huge gains. SPX gained $34 to close at $1193 and RUT closed up $32 at $698. Retail stocks were buoyed by early reports of Black Friday sales being up significantly. New home sales came in at 307k for October, up slightly from September's 303k. Trading volume in the S&P 500 stocks was up from last week at 3.0 billion shares, but still below the 50 dma at 3.4 billion shares.The volume data for NYSE and NASDAQ was up significantly, but that was in comparison to Friday's light session, so that wasn't meaningful.

SPX is now closing on the heavy congestion area of $1200 to $1220, where it hung up for several sessions in mid-October.

My iron condors are both almost perfectly delta neutral after today's bounce; the Dec iron condor on RUT stands at a P/L of +$1,820 with delta = +$8 and theta = +$70. I entered my Jan iron condor on SPX at 970/980 and 1350/1360; it stands at a P/L of +$700 with delta = -$4 and theta = +$54.

Will tomorrow see some profit taking after this huge rally? And, of course, we are still subject to the news and rumors out of Europe. That could push us dramatically one way or the other. So don't become complacent.