More negative news from Europe sent traders to hit the sell button. It strengthened the US dollar and that also pushed the equity markets lower. SPX lost $32 to close at $1099 and RUT closed at $610, down $35. Trading volume in the S&P 500 stocks spiked upward with 4.4 billion shares trading; this is above the 50 dma of 3.9B. Trading volume on the NYSE increased 11% and trading on NASDAQ jumped up 25%. We had positive economic news this morning with the ISM manufacturing index coming in at 51.6 for September, up  a small amount from August's 50.6. Construction spending was up 1.4% in August, as compared to a decline of 1.4% in July. But these data points were widely ignored. Every major market index booked losses. Many stocks hit 52 week lows.

Today's action broke the support levels that were set in the August crash and had been repeatedly tested, so this was significant. SPX broke through $1200 to close at $1099, and it closed at the low of the day - very bearish. RUT was even more bearish, closing at $610, well below the August lows at $650. For a couple of months we have been wondering if this was a correction in a bull market or the beginning of a bear market. Today's action strongly suggests the latter.

My Oct condor is unchanged with my holding only the 500/510 put spreads. I am still looking for the opportunity to re-position the call spreads.