SPX broke out to new all time highs today with a spurt of $14 to close at $1782. RUT ran up $11 to close at $1112, but RUT's all time high remains quite a bit higher at $1123. Trading volume in the S&P 500 stocks bumped up to the 50 dma at 2.1 billion shares. Trading on the NYSE increased 9% and trading volume on NASDAQ increased 2%. The VIX dropped back down to 12.5%.

Most of the talking heads attributed today's big rally to Macy's excellent earnings announcement causing analysts to think holiday sales will be strong. But that announcement occurred before the market opened this morning and SPX opened down at the open. It was only after noon that the markets began to trade upward. SPX appeared to be trading in a tight consolidation range from about $1745 to $1772 until today's break out. Does today's move mark a new leg in the bull rally? Or will we see the market sell off tomorrow? Hard to say, but I would want to see an open tomorrow above today's close at $1782 to start playing the all out bullish trades.

The earnings parade continues with CSCO this evening and WMT tomorrow after the close.