Yesterday's market weakness after such a strong performance the previous day wasn't too surprising. But today's selling became serious. SPX traded down $14 to close at $1399 and RUT closed down $14 to close at $820. SPX dropped right after the market opened and traded sideways most of the day; some buying during the last hour recovered some, but not much, of the loss. Trading volume was basically flat with 2.8 billion shares of the S&P 500 trading. Volume on the NYSE was up 3% and trading was up 1% on NASDAQ. Most analysts attributed today's market losses to traders reading the FOMC minutes and concluding no further stimulus was imminent from the Fed. Are we that addicted to hand-outs in this country?

The ADP payrolls report cited 209k additional jobs in March, down a bit from last month's 230k. But this still wasn't a bad report. In a similar vein, the ISM Services Index came in at 56.0 for March, down a bit from the previous month's 57.3. Once again, the economic data wasn't signaling an economic boom, but we have certainly seen much worse data in the last couple of years. This week's jobs report on Friday will be somewhat unique in that the exchanges will be closed, so we may be seeing some risk aversion in today's selling in advance of that report; if so, we may see more selling or at least a flat market tomorrow.

Not too surprising, VIX rose on today's sell-off and rose as high as 17.4% this morning, but steadily pulled back after about 1:30 pm ET, closing at 16.4%.

SPX has set up a strong support level at about $1390 over the past five to six weeks, but we only traded down as low as $1394 today before bouncing back up a bit. So far, SPX has held support, but if we break $1390, this could get ugly.

My April iron condor on RUT stands at a P/L of +$2,620 with delta = +$7 and theta = +$30. Both spreads are over two standard deviations OTM at this point with 16 days to go to expiration. We'll see what tomorrow brings; the drop in VIX toward the end of the day was encouraging, but that could change overnight.