SPX and RUT both found support at the 200 dma yesterday, and when the overnight futures were positive, it made me wonder: another V bottom? Would buying the dip pay off once again? Well, so far, so good. SPX tacked on 26 points to close at $2093, recovering most of the losses for the past two trading sessions. RUT ran up $10 to close at $1225. The big institutional players must have relaxed; the VIX lost two points to close at 13.4% - quite a turnaround from the peak at 16.3% yesterday. Trading volume remains above average and steady with 2.5 billion shares of the S&P 500 stocks trading today. Volume rose 1% on the NYSE and 5% on NASDAQ.

The Case Schiller housing price index reported an annualized price increase of 4.9% for May, down a touch from April's 5.0%. The Conference Board's consumer sentiment survey came in at 90.9 for July, down from 99.8.

Probably the most significant overnight event for our markets was China's markets appearing to stabilize.

My September condor on RUT at 1090/1100 and 1350/1360 closed today up 17.4%. If we had closed this position today, the Flying With The Condor™ service would be up 38% year to date.

The FOMC meeting began today. Everyone will be watching the announcement tomorrow afternoon closely. It fascinates me how the guests and hosts on CNBC are so confident that they know when the Fed will increase interest rates. Confidence sells.