The markets appeared to bounce off support established just after the first of the new year. But it is a tenuous conclusion, especially since the economic data to support this recent market weakness appear absent.

SPX closed up $27 at $2019 and RUT gained an even larger percentage, closing at $1177, up $22. The VIX pulled back over a point to close at 21.1%. Trading volume was up modestly with 2.6 billion shares of the S&P 500 stocks trading. Trading on the NYSE was up 9%, but trading volume was flat on NASDAQ.

The CPI declined 0.4% in December, while the PPI declined 0.3%, so inflation seems largely absent, at least according to the official data. Industrial production for December dropped 0.1%, in contrast to the 1.3% increase in November. Capacity utilization was flat at 79.7% for December (80% in November). The University of Michigan's consumer sentiment survey peaked at 98.2 for January, up from last month's 93.6, which we thought was high. This is an eleven year high for this survey with consumers probably buoyed by the large decrease in gas prices.

SPX settled at $1989.68, so both spreads in my January condor expired worthless, but the market required two adjustments to this position and both adjustments were expensive due to the extreme market whipsaws, overwhelming our potential profits. This position lost 6%, but our February position is already up 4%. For those of you trading Russell (RUT), it settled at $1150.75.

The markets will be closed on Monday, so enjoy your long weekend.