The bears appeared to be in control for a short time this morning. SPX traded as low as $1945 before recovering to close at $1957, down only $2. RUT followed suit, closing down $2 at $1181 after hitting an intraday low at $1172. Volatility is unchanged with the VIX closing at 11.6%. Yesterday I was surprised at the market overlooking the first quarter GDP debacle; this morning it appeared some traders had second thoughts, but it didn't take long for the bulls to reassert themselves. Shorting this market is dangerous work.

Initial unemployment claims were essentially unchanged this week with 312k, down from last week's 314k. But the continuing unemployment claims increased from 2.56 million to 2.57 million.

My July iron condor on SPX started 5/21 with spreads at 1760/1770 and 1950/1960. I hedged with Aug 1050 calls on 6/2 and closed the hedges on 6/11 for a net gain of $1,200. I closed and rolled the 1950/1960 calls to 2000/2010 on 6/6. Today I closed the 1760/1770 put spreads for a dime. This position is now roughly at break-even. I will sell new put spreads and push the position back into a profitable state either tomorrow or next week.

The last three days of price action appear to be establishing the area of $1945 to $1950 on SPX as support. Unless the bears can hold a close below that level, the bullish trend must be assumed to be unchanged. Perhaps a sideways consolidation is the most bearish price action possible in this market. But be careful, it could all change in a blink of the eye. Large and fast price fluctuations have become the new normal.