Is this market finding support or simply grinding lower? That is the big question. SPX closed down $7 at $1335 and RUT lost $3 to close at $790. Trading volume bumped up today with 2.7 billion shares of the S&P 500 trading (the 50 dma is 2.8B). Trading rose 8% on the NYSE and also rose 5% on NASDAQ. The VIX opened at 18.8%, moved up to 19.5%, but then settled down to 18.3% after the markets recovered this afternoon.

SPX traded down to $1325, but rebounded to close at the 50 dma at $1335. And this occurred on higher volume. Can I interpret this as the market finding support? Or am I just whistling in the dark?

Initial unemployment claims dropped 26 thousand this week to 350k, while the number of continuing claims remained essentially flat at 3.3 million (down 14k). These mediocre numbers may have contributed to the negative mood of trading this morning, but somehow, the markets overcame that weak opening.

My July iron condor stands at a net gain of $2,620 with delta = -$10 and theta = +$75. I will apply the Two Sigma Rule tomorrow to determine if either spread should be closed; at this point, we may end up allowing both spreads to go into expiration to expire worthless. The Aug position stands at a P/L of +$860 with delta = -$47 and theta = +$77.