NDX catching up, RUT also up

Nine days of consecutive gains for the RUT - NINE! Today it rose a mere 0.06 points, but still it was up. The big winner today was the NDX however, while the SPX fell abit. It seems that investors are rotating back into technology with XLK (the main technology ETF) rising nearly 1%.

We should have a slight pullback in the indexes tomorrow. At least, it seems timely. Short-term volatility fell drastically today, and actually is now back at the lowest levels we have seen in the last 6 months. VIX still has plenty of room to fall further, though.

I also notice that the number of stocks trading above their 50-day moving averages is stabilizing, like happens when market internals reach an extended bullish level. This does not mean the market is going to fall wildly, but rather further gains will be muted. 

As the NDX continued its uptrend today, I sold an additional put spread to expire tomorrow at the very low level of 4690/4670 (20-wide) for 60 cents. This is just really free money right now, as the NDX has to fall about 2.5% tomorrow for this spread to be in danger. I am hoping the NDX does not go higher tomorrow, as we have the call spread on at 4810/4820 also.