There was a glimmer of hope in the markets this morning, mostly driven by the Facebook IPO, but then the bears started to take control once again. SPX closed down $10 at $1295 and RUT broke through its 200 dma and closed at $747, down $7. Today's close on SPX confirmed yesterday's break of support at $1305; now we look to about $1265 for the next support level. The 200 dma is at $1278. Even more bearish is the trading volume level which increased again today to 3.4 billion shares of the S&P 500; trading on the NYSE increased 23% and trading volume increased 30% on NASDAQ. Some of this volume increase can be attributed to options expiration, but I still see it as predominantly bearish.

VIX increased again today, closing at 25.1%. We aren't seeing the free fall of last August or the volatility swinging back and forth as it did then, but this correction is getting nasty. In fact, I started to wonder today if the trend has shifted. Perhaps it is the beginning of a bearish trend rather than a minor correction within a bullish trend.

The remaining 910/920 call spreads in my May iron condor will expire worthless with RUT settling at $753.60 (I closed the 720/730 put spreads yesterday). I hedged the June 690/700 and 880/890 RUT iron condor today with July 700 puts. This position closed today with a P/L = -$100 with delta = +$11 and theta = +$12. Our hedge will serve to hold losses to a minimum while we buy time for the index to either slow down and trade sideways or pull back. With the closing of our May position, the year to date results for the Flying With The Condor™ stand at +26% with the S&P 500 up 3% for the year. If SPX trades down to $1258, the market will have given up all of 2012's gains, but we are making money.

So now I put the hectic expiration Friday behind me and look to dig some holes to plant whatever my wife bought at Costco - I'm the unskilled labor this weekend. Enjoy.