The markets continue to trade in a tight range with neither the bulls or the bears in control. SPX chopped sideways most of the day, traded into negative territory in the afternoon, but recovered by the close to gain only one dollar, closing at $1686. RUT traded in a similar pattern, closing up $3 at $1044. The volatility index, VIX, closed unchanged at 13.4%. SPX is hammering out a support level at $1680 while RUT seems to be trading down to and bouncing off of support at $1040. Trading volume increased to 2.1 billion shares on the S&P 500 stocks, but remains below the 50 dma at 2.4B.  Trading volume increased 16% on the NYSE and increased 21% on NASDAQ.

The Case Schiller Housing Price Index came in at an increase of 1% in May as compared to a 1.7% increase in April. Most analysts were expecting a slightly higher number but remain upbeat on real estate.

All eyes are on the FOMC announcement tomorrow afternoon. It is hard to predict how the market may respond.

MA reports earnings in the morning before the bell and I sold the AugWk1 570/575 and 625/630 iron condor in anticipation of the volatility crush after the announcement.

My Aug iron condor on RUT stands at a net P/L of -$3620 with delta = -$84 and theta = +$233. My short strikes are at 980 and 1080. As you can see from the Greeks, we are gaining quite a bit each day from time decay at this point in the trade.

Grab your popcorn and settle in for the FOMC Show tomorrow!