The Standard and Poors 500 index (SPX) closed today at 5,815, up 35 points or +0.6%. SPX opened the week at 5,738, gaining 1.3% for the week. Trading volume slowly declined this week.

VIX, the volatility index for the S&P 500 options, declined slightly this week, opening Monday at 20.8% and closing today at 20.5%. This level of volatility seems high for a rising market. Is the market apprehensive of the upcoming election?

I track the Russell 2000 index with the IWM ETF, which closed today at 221.3, up four points or +2% on the day, and up +1.2% for the week. The strong rise in IWM today is a bullish signal.

The NASDAQ Composite index closed today at 18,343, up 61 points or 
+0.3%. NASDAQ opened the week at 18,080, setting up a strong weekly gain of +1.5%. NASDAQ’s trading volume was flat this week.

One would think that the announcement of a 50-basis point rate reduction by the FOMC three weeks ago would have effectively ended all of that Fed noise. But it appears the market is obsessed. One example this week: the CPI posted another lower number and the annual rate of change for CPI is now +2.4%. I wasn’t long ago that it was over 3%. But the market slumped after the CPI announcement because the monthly change of 0.2% was "above forecasts". It was one more example of this market being very difficult to please. Maybe the uncertainty of the election is bubbling up. That may explain why we have a 20% VIX while the market is trading higher.

The most positive news this week was the Russell 2000 index finally waking up with a strong day, rising over two percent. These are the classic high beta stocks that the institutions and hedge funds use to boost their results in bull markets.
The S&P 500 set a new all-time high today but NASDAQ remains below its 
all-time high from July 10th. IBD’s market assessment stands at its most bullish level, with stock exposure of 80-100%. The Stock Traders Almanac has triggered its seasonal buy signal.

I’m unsure why I am uneasy.