The markets opened lower this morning, following the lead of European markets, based on political problems in Spain and Italy. The instability in Greece continues to worsen. SPX closed down $17 at $1496 and RUT closed at $899, down $12. SPX gave up a few more points in the last few minutes of trading, closing at its low for the day. As one might expect, VIX moved up to 14.7%. Trading volume fell from last week with 2.5 billion shares of the S&P 500 stocks. This is right at the 50 dma. Trading volume fell 14% on the NYSE and declined 7% on NASDAQ.

Tomorrow's open will be critical to answer the question of how severe or modest the correction might be. If SPX opens at $1495 and holds that level, then we could trade sideways for a bit and allow this over heated market to stabilize. If it falls through $1495, the next support level is $1470. In that case, the correction could be more severe. But we may all be surprised and see this strong bull reassert itself, as it has been doing for several weeks against all reason.

My Feb condor stands at a 2% gain with delta = -$68 and theta = +$194. So we wait and see what tomorrow brings.