After SPX closed at a new all-time high on Thursday, everyone was ecstatic. But SPX gave it back today, closing down $7 to $1562. It could have been worse; about 20 minutes before the close of trading, SPX traded as low as $1558, but rebounded a bit into the close. RUT traded down even more sharply with a $13 loss down to $939 (a 1.4% loss versus a 0.4% loss). Today's close put SPX firmly back into its former trading range, but RUT dipped a bit below its trading range, down as far as $935 before recovering to close right at the bottom edge of the trading range of the past three weeks. Surprisingly, trading volume sunk even further, with 1.9 billion shares of the S&P 500 stocks trading. Trading on the NYSE dropped off 22% and trading volume on NASDAQ decreased 7%. Maybe traders took Monday off to extend the long weekend.

The ISM Manufacturing Index reported out at 51.3 for March, a decline from February's 54.2. Analysts were expecting it to remain flat. Readings above 50 indicate that more manufacturers are expanding rather than contracting. The new orders portion of the ISM Index was even more disheartening with a decline from 57.8 to 51.3. Perhaps this news, together with fewer traders on the floors, contributed to today's pullback. It will be interesting to see if there is any follow through lower in tomorrow's markets.

VIX popped up nearly a full point to 13.6%; this modest increase in volatility doesn't support the idea of a big correction starting to take hold.

My Apr iron condor on RUT stands at a loss of 7% with position delta = +$32 and position theta = +$105. All in all, I am inclined to think this market will continue to trade within the range it has defined over the past three weeks. This Friday's jobs report may be an important signal. If the market continues sideways or higher on a mediocre report, the bulls are still in charge (or should I say the Fed continues to hold the market up?).