SPX opened lower this morning and then sunk even farther after a disappointing Chicago PMI report. Then SPX strengthened and traded sideways roughly at no change most of the day, but then sold off at the close. SPX lost $7 to close at $1606 while RUT closed at $977, down $2 on the day. VIX ended the day unchanged at 16.9% after moving as high as 17.7% this morning. Trading volume was up with 2.9 billion shares of the S&P 500 stocks trading. Trading volume on the NYSE was up 32% and volume increased 49% on NASDAQ.

The Chicago PMI came in at 51.6 for June, down from last month's 58.7. But the University of Michigan consumer sentiment survey reported 84.1, up from 82.7. The Chicago PMI is closely watched by traders and probably set a negative tone for trading today.

SPX traded up and bounced off resistance at the 50 dma yesterday. This morning SPX traded down and bounced off support at $1600. So those are the "lines in the sand" to watch. A break out above the 50 dma at $1622 would be bullish and a break below $1600 would be a bearish sign. But this market remains very volatile; it is exceedingly difficult to determine a trend. The least little thing seems to push it either way and then it reverses course the next day. But support at $1600 and resistance at $1622 are at least the first signals of a break one way or the other.

My July iron condor stands at a net gain of $2,100 or +12% with position delta = +$24 and position theta = +$86.

Enjoy your weekend.