Last week's inexhaustible run upward was most unusual, so today's pause was very natural and probably expected by many traders. SPX dropped back by $2 to close at $1338 and RUT gained $2 to close at $842. Trading volume was down with 2.3 billion shares of the S&P 500 trading (well below the 50 dma of 2.9B). Trading volume decreased 3% on the NYSE and volume dropped 7% on NASDAQ.

Moody's downgraded Portugal's debt today and the market dropped but then immediately traded back up to roughly where it was before the announcement. This downgrade wasn't a surprise for traders so I'm not sure why the market dropped. Factory orders increased 0.8% in May after decreasing 0.9% in April, but most analysts were expecting a 1% increase.

My July iron condor on RUT stands at +$3,060 with delta = -$47 and theta = +$94. The Aug condor stands at a P/L of -$140 with delta = -$100 and theta = +$71. The delta of the short 890 calls = 18, so we are near the point of adjusting this position.