The S&P futures were initially buoyed this morning by the 1.9% growth in first quarter GDP, which was in line or beat most estimates. Durable goods orders grew 1.9% in May, providing more good news. But the selling began almost immediately after the open, and the markets traded downward all day. SPX closed down $15 at $1268 and RUT closed at $798, losing $5. Trading volume in the S&P 500 was essentially flat from yesterday and remained above the 50 dma. Trading volume was up 9% on the NYSE and was up 38% on NASDAQ.

The question on everyone's mind remains whether this is a correction in a bullish trend or a new bearish trend. A couple of facts stand out on the SPX chart. A clearly defined downward trend can be drawn since early May, now down about 7%. One could draw a sideways consolidating range of trading for the past two weeks, but the market could break out of that range to either direction. Bottom line: for my directional trades, I am largely in cash and waiting for a direction to emerge. For my delta neutral trades, I don't worry about where it is going - I trade what the market gives me.

My July iron condor on RUT at 700/710 and 880/890 stands at +$2,500 with delta = +$23 and theta = +$79. My Aug iron condor on RUT at 670/680 and 890/900 stands at +$500 with delta = -$12 and theta = +$70. The July condor now has three weeks left until expiration, so those far OTM spreads are looking pretty solid. The Aug condor looks good for now, but a lot of time remains for the market to look me up. Maybe he has forgotten about me... or is it a she?