The markets appear to have broken through the upper resistance levels to set new highs today; I will feel more confident about that statement if we hold these prices tomorrow. SPX closed up $13 at $1886, eclipsing earlier closes this year at $1878 and even the intraday highs around $1884. RUT followed suit with a large increase of $16 to close at $1189, but remains far from its earlier highs around $1209. Much more damage was done to RUT from March 24th to the 27th. RUT fell completely out of its consolidation trading range whereas SPX managed to hold support levels.

Volatility continues to fall with the VIX losing almost a full point to close at 13.1%.

Part of the market's enthusiasm probably came from the ISM manufacturing survey that rose in March to 53.7 from 53.2 and construction spending increasing 0.1% in February versus January's 0.2% drop. These aren't huge numbers by any means, but the sum effect of recent comments from Yellen and assurances that the Fed has the market's back are being taken as very bullish. It is hard to argue with that viewpoint. When I drive around my area and see the large number of vacant storefronts and evaluate the "real" unemployment data, I believe that tells a different story. We may be able to argue about the underlying economics, but I can't ignore the obvious bullish nature of this market.

The Apr 1100/1110 put spreads I entered on 3/24 have boosted my April iron condor to a gain of $3,440 or +22% on the capital now at risk (I closed the Apr 1270/1280 call spreads on 3/24). I opened my May position with the 1060/1070 put spreads on 3/28 and that position is now up 7%, so May is off to a good start. The question now is whether this market will ever pause long enough for me to sell May call spreads.

So now we continue to watch to see if this bull can continue. I may be skeptical, but I have to play what I see.