Yesterday's up day was apparently just a head-fake. The Chicago PMI and the consumer sentiment reports both beat expectations, but that wasn't enough for this market - the sellers went on a rampage. It reminds me of a few weeks ago when the bad news was ignored and the market continued to rally. RUT dropped over $17 to close at $563 while the SPX dropped almost $30 to close at $1036. The next area of support for RUT is around $548-$552 while support for SPX is around $1020.

I re-established my Jan $510 put hedge this morning (two contracts at $12.70). This left my Dec iron condor at the close with a P/L of -$20, delta = -$18 and theta = +$20. The adjustment puts gained over $500 today, minimizing the loss on my condor and also flattening the risk/reward curve down to about $520. This gives the market time to turn around or for us to further adjust or close our position without getting ourselves into a large loss.