Now the RUT and the SPX posted five positive closes in a row. Its been ages since we have had that type of bullishness. Both these indexes sit right around previous support levels, which should act as a bit of resistance in the short term.
Today's market showed signs of tiring. This followed a late day sell off on Friday. Weakness is typical after bullish action when non-farm pay day reports come out. With next week being options expiration, this week should give a set up for the rally next week.
Today the short-term volatility index (VXST) closed higher than the VIX today. This is generally a short-term bearish signal.
We will look for opportunities to close the RUT spread this week, on any pullback, and open some bullish trades for next week.
