The markets were pretty choppy today, but the bullish pressure was unabated with SPX closing at $1525, up $7. RUT was less bullish all day, closing up $2 at $917. SPX closed right at or near a decision point on the chart. SPX hit highs just above $1530 week before last, so today's close is nearing resistance. It will be interesting to watch if SPX can break through to new highs above $1530. If you survey the major technical indicators for the market (put/call ratios, P/E ratio and dividend yield of the S&P 500, etc.), I think it is fair to say you would end up with a neutral to bearish posture. But, on the other hand, this market has been overbought for some time and has continued higher.

The CBOE volatility index, VIX, opened at 16.2% this morning, and dropped all day to 14.0%. The recent volatility in VIX demonstrates the nervousness of the market these days; the market may be trading higher, but traders are watching over their shoulders for the other shoe to drop, likely in Washington. VIX is still at relatively low levels, but it has spiked higher in recent days and then, just as quickly, dropped back down.

Trading volume declined today, even as the markets traded higher, with 2.2 billion shares of the S&P 500 stocks trading today. Trading volume on the NYSE and NASDAQ both dropped 8% today. A market move higher on declining volume is not bullish.

Today was a slow day in terms of economic data. The ISM Services Index reports tomorrow. Wednesday brings the FOMC Beige Book and the ADP payroll data, which will be the first clue for the jobs report Friday.