Traders sold off in strength in reaction to the election results. To some degree, one's analysis reflects one's politics. The most politically neutral analysis simply sees the current political landscape as conducive to continued political gridlock leading to recession next year as taxes rise and automatic spending cuts kick in. SPX lost $34, closing at $1395 while RUT lost $21 to close at $805. Trading volume jumped up dramatically with 3.3 billion shares of the S&P 500 stocks trading. Trading volume on the NYSE rose 32% and trading on NASDAQ rose 15%.

Regardless of whether one drew his support line on SPX at $1405 or $1400, support was broken today. That was the area where we spent most of August. The 200 dma is at $1380. RUT fared even worse, breaking its 200 dma at $807. Tomorrow will be crucial for technical analysts watching the charts.

Today's big move downward actually helped my condor positions. The Nov position stands at a P/L of +$2,420 or +15% with delta = +$39 and theta = +$194. The 760 puts have a delta of 8, so the downside is pretty safe thus far. The Dec position is up $980 or 6% with delta = +$1 and theta = +$69. The delta of the Dec 710 puts is 11, so the put spreads are still relatively safe.

So now we wait to see of the carnage continues or we get a bit of a bounce after today's big drop.