The Standard and Poor's 500 Index continued higher today and closed up $8 at $1955. RUT was more subdued, gaining $2 to close at $1143. SPX has a strong area of resistance from $1950 to $1960 and today's action solidly broke $1950. RUT remains below its 200 dma, so it certainly hasn't turned strongly bullish.

After I wrote yesterday's blog, Investors Business Daily moved their market indicator to Confirmed Uptrend from Market in Correction. That surprised me because I am not fully convinced we are out of the woods. One negative indicator for the past two days is lower than average trading volume with the S&P 500 stocks trading 1.5 billion shares both days; the 50 dma is 1.9 billion. Today's trading on the NYSE was down 6% and trading on NASDAQ was down 3%. That doesn't sound like charging bulls. Volatility continues to fall with the VIX losing a half point to 12.4%, so I must be the only trader who is worried..

Unemployment claims increased to 311k from last week's revised 290k figure; the four week moving average increased to 296k. Continuing unemployment claims increased 25k to 2.544 million.

I am tentatively entering some bullish trades, but I am watching them very carefully. If we have passed the bottom of the correction, it was certainly a mild one with a 4% correction on SPX. On the other hand, we are 45 points higher from the low on August 7th. Is it significant that I don't feel like we have gained $45?