RUT rebound leads markets higher

Today the RUT put in a tremendous performance, returning to the top of its recent range. I have to watch to see if it can make it into new high ground like the rest of the markets have already.

The weekly chart of the RUT has an hanging man candle pattern, and a bearish cluster on the Market forecast chart. This ultimately could be the top for the RUT, or very close to it.



I am not yet getting any more bearish. Instead, I rolled out the RUT 1385/1390 call spread until next week's expiration at higher strikes of 1395/1400 for a credit of 5 cents. This way we are safer further above current resistance levels and have more time to maneuver if the market is again bullish tomorrow.

The SKEW fell today to 129, as the short term volatility collapsed to below 9! I will continue to move the call spreads out and up, if needed to ensure any pullback is caught.