Markets opened lower this morning but then traded sideways to slightly upward throughout the day. The SPX dropped as low as $1070 before bouncing back to close unchanged at $1079. RUT dropped to $605 at the open before recovering to close up $6 at $615. Trading volume was flat to down for the day. The S&P 500 stocks traded 2.6 billion shares, down from yesterday and well below the 50 dma. Trading on the NYSE was down 8% but unchanged on NASDAQ. The NY Fed Empire Manufacturing Index posted an increase to 7.1 from last month's 5.1, and the NAHB Housing Market index decreased to 13 for August from the previous month's value of 14. But tomorrow brings the Housing Starts and Building Permits reports, which will be more definitive data for the housing market.

I should not have my Aug condor on RUT still open, but I have been squeezed into this corner, attempting to salvage a gain or at least minimize the loss. The position with 550/560 and 590/600 put spreads and 680/690 and 705/715 call spreads (10 contracts of each) now stands at a P/L of -$727 with a position delta of +$110 and theta = +$397. The theta/delta ratio is good but the large value of delta emphasizes the price risk for this position, with RUT so close to the 590/600 put spreads. My Sept 530/540 and 740/750 iron condor on RUT stands at a P/L of +$660, delta = +$42 and theta = +$62 (20 contracts). So the question remains: have we found the bottom? Today's price action on the SPX seems to suggest that, but the low trading volume doesn't give one any confidence.