Traders headed for the exits today, based on some negative economic reports and ADP's employment report. SPX lost $31 to close at $1315 and RUT lost even more proportionately with a $27 decline to $821. I didn't perform a precise analysis, but a quick glance at the price charts suggests these were the largest downward moves on either of these indexes this year and maybe farther back yet. Yesterday's strong upward move surprised me. After all, think of the negative factors swirling around the global economy: Euro debt problems, US debt problems, the end of QE II, continuing high unemployment, and weakening economic data. But the strength of today's downward move also surprised me. If you draw the trend lines on the SPX chart for the downward trend starting in early May, today's move took SPX right back into the middle of that downward trending band.

Trading volume on the broad markets jumped up today with 3.2 billion shares of the S&P 500 stocks trading today. This is the first time in several weeks that the S&P 500 volume has exceeded the 50 day moving average. But trading volume on the NYSE was only up 3% and trading on NASDAQ was actually down 8%.

ADP's employment report started the ball rolling this morning by reporting 38k jobs were added in May, down from last month's increase of 177k. Then the ISM index came in at 53.5 for May, down from April's 60.4. Late in the day, Moody's piled on by downgrading Greece's debt, but to whom was that surprise? Tomorrow morning brings unemployment claims and Friday brings the nonfarm payrolls report (aka the jobs report). ADP's weak showing has analysts worried about the jobs report Friday.

My June iron condor on RUT stands at a P/L of +$2,076 with delta = +$9 and theta = +$104. I removed the hedges on my July iron condor on RUT; it now stands at a P/L of -$120 with delta = -$60 and theta = +$96.

So now the question is: will we have a bounce back up tomorrow? Or will we plunge even further?