Without any real "news", the market swooned to its biggest drop in several weeks.
It has been often said that the market doesn't always need a reason to go down, and the last two days have shown this can be true. Indices across the board were all down; SPX closed at 1963.71, a bit over 21 points lower than last week's closing high of 1985. Having said that, I'm not convinced (yet) that this is "the start of the correction" as some analysts are saying. A drop through support all the way down to 1900 would still only be just over a 4% decline, a true correction tends to be 10% or more.
SPX 6 Month Chart:
Along with the market's decline, the volatility index (VIX) was up over 10% at its high yesterday, closing +7% at 11.98. However, putting that in perspective, that is only up about 2 points from last week's seven year low.
VIX 5 Year Weekly Chart
As far as new position entries, SPY still does not have the 1 point strike increments above 200 that we need for the August Iron Condor, so that is on hold for the time being. If SPX is within the guidelines, I do plan to enter an SPX Iron Condor for the July weekly cycle Thursday. For those unfamiliar with this revised weekly strategy, the guidelines were posted on May 30, and can be found here: Link to Articles
Trade entry details will be posted when the position is opened.
As always, trade carefully and stay keen on your risk management,