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The Conference Board's consumer confidence report weighed heavily on the market most of the day, but buyers appeared during the last hour of the market to restore most of the markets' earlier losses. The SPX closed at $979.62, down 0.3%. The RUT was down as far as $544 during the day, but rebounded to close at $551.95, a modest 0.2% gain. This rally seems to contradict the generally dismal economic news and appears to have staying power, but who really knows? The fact of the matter is that most of the people participating in the markets today are nervous, having lost their comfortable rules of thumb over the past few months. So the next economic report or earnings announcement could trigger a rally or a sell-off. Remain cautious.

My Aug iron butterfly position is largely unchanged from yesterday with a P/L = -$2,270, delta = -$99, and theta = +$140. The $140 per day of time decay is comforting, but this position is right on the edge of requiring additional adjustment.

My Aug iron condor is slightly improved at a P/L of -$825, delta = -$35 and theta = +$123.

So we wait and see what the market gives us tomorrow: a strong move upward and more adjustments, or a downward move with a sigh of relief.