A more cautious tone took over the markets today as traders contemplated the possibility of China dragging the world into recession and Greeks rioted in the streets outside the parliament.  Maybe the Greeks are headed out of the Euro after all. But does it matter? However, the economy of China does matter. Repercussions of a recession in China will be felt globally.

SPX dropped back by two dollars to $2107 and RUT declined $9 to close at $1265. Volatility was essentially flat with the VIX at 13.2%. Trading volume rose with 2.1 billion shares of the S&P 500 stocks trading. Volume on the NYSE rose 12% but trading volume on NASDAQ was essentially unchanged (down 0.3%).

It seems as though earnings announcements thus far have been neutral to encouraging, but we are early in the cycle. Intel and Netflix traded higher this evening after their announcements.

My August iron condor on RUT at 1100/1110 and 1360/1370 is almost perfectly delta neutral and up 12%. The September RUT iron condor at 1090/1100 and 1350/1360 stands at a net gain of 11%.

The results of the vote in the Greek parliament should be out this evening, so we will see what the futures look like in the morning.