The SPX and RUT have been incredibly bullish, while the NDX and tech related ETFs are really pulling back. I imagine this doesn't bode well for the SPX and RUT, but as of now the market is not showing signs of rolling over. The SKEW is still below 130, and the down days are limited.
I rolled the RUT calls a couple times and last Friday I put on some RUT bull put spreads knowing that today is historically a very bullish day.
I continue to watch the usual indicators for signs of weakness in the market: the SKEW, the Put/Call Ratio, the VIX term structure and, market breadth. As Oil stay strong and signs of oil demand continue, the market should at least trade sideways if not continue up.
Sideways seems like the way this market could trade over the next few months, and I expect this to be a generally easy time to make money on both the bullish and bearish side.
