2:25 pm ET: We finally are seeing some follow through on the previous day's action. The bulls are back in the driver's seat but market internals (high VIX and high negative VWAPs) are telling us that they're not out of the picture by any means. Everyone is looking towards the outcome of Sunday's Greek election which does have the very real power to move the market significantly in either direction. Or not. Previous pundit prognostications concerning the Eurozone often have turned out to be just as wrong as they were right, so really, the election's impact is anybody's guess.
Next week will be a festival of potential market moving news: the aforementioned Greek elections on Sunday followed by the FOMC meeting on Tuesday and Wednesday. Look for the words "quantitative easing" to be bandied about a lot. I'm expecting volatility to remain high at least through Wednesday, but continuing sturm and drang from Europe should serve to keep it elevated. The way to play this market is simply to remain on the sidelines. Day traders and those with large risk appetites can look to play the volatility index via one of the many VIX-based exchange-traded instruments: XIV, VIXY, VXX, VXZ, TVIX, SVXY, etc. If you choose to go this route, please use small positions, be nimble, and be careful--these trades are not for the faint of heart!