The Standard and Poors 500 index (SPX) closed today at 5,648, up 56 points or 1%. SPX opened the week at 5,640, closing almost flat for the week at +0.1%. Trading volume remained below the 50-day moving average (dma) all week, but spiked up above the average today.

VIX, the volatility index for the S&P 500 options, opened on Monday at 16.3%, and steadily declined to today’s close at 15.0%. That level for VIX remains a couple of points higher than before the correction.

I track the Russell 2000 index with the IWM ETF, which closed today at 220, up 1.3 points or +0.6%. IWM was down almost one percent this week.

The NASDAQ Composite index closed today at 17,714, up 197 points or 1.1%. NASDAQ opened the week at 17,868, setting up a weekly loss of 0.9%. NASDAQ’s trading volume remained at or below the 50 dma most of the week and fell even further today, probably a pre-holiday decline.

It seemed like the general expectation for the FOMC last week was for a rate cut at the September meeting. However, that consensus shifted a bit this week and that cooled the attitude of the bulls, holding increases to a minimum.

The Stock Trader’s Almanac cites September as historically the weakest month of the year for the stock market. Maybe this flat week is just the beginning. The FOMC meeting will probably set the pace for September.



Our QQQ iron condor is doing well, as one might expect for a sideways market. I gave it plenty of room so we can tolerate moderate moves in either direction. So far, that position is up 18%.

It pays to be selective and cautious in this market.