The markets are holding right at resistance. In fact, given the onslaught of political posturing and refusal to negotiate about the debt ceiling, the market is holding up surprisingly well. I suppose the conclusion is that traders don't yet take the rhetoric seriously. SPX closed at 41471, down $1 and RUT also lost $1 to close at $880. VIX remained flat at 13.5%. Trading volume was mixed with a drop in the trading of the S&P 500 stocks to 2.2 billion shares and a drop of7% on the NYSE. But trading on NASDAQ increased 5%. Maybe that was the furious trading in AAPL on the reports of iPhone 5 sales falling off.

Today didn't bring any economic data for the markets to pore over. Tomorrow we get retail sales and the PPI.

My Feb iron condor on RUT at 820/830 and 910/920 stands at a P/L of +$440 or +3% with delta = -$82 and theta = +$140 on 20 contracts.

It seems like we have moved from one death watch (fiscal cliff) to another (debt ceiling). Fun, fun...