Was it FOMC jitters, "Brexit", falling oil prices? Take your pick on what sent the bulls into hibernation Friday.

The broad market declined for a second day in a row Friday as nervousness over an impending vote that could see the U.K. leave the European Union, as well as a drop in oil prices, spurred a global selloff. Add to the mix the pending FOMC meeting next week and whether a rate hike is coming soon.

The benchmark index SPX closed down 19 points or -.9% at 2096.07; below the psychological 2100 support level. The drop represented a loss for the week of -.2%, the first weekly loss in four weeks.

We only have one open position on this weekend; yesterday's selloff took SPX out of entry range for the weekly Iron Condor. Below is the open position status:

SPY July Iron Condor

This monthly position was opened on Monday, June 6. Position details are below:

- SOLD SPY July 217 Call, .37 credit.

- BOUGHT SPY July 222 Call, .06 debit.

- SOLD SPY July 201 Put, 1.21 credit.

- BOUGHT SPY July 196 Put, .70 debit.

Order was filled as an "Iron Condor" for $.82 net credit (all four legs) .

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this trade: $418.

Target Gain: 10% of margin/risk.

Max loss: 15% of margin/risk.

Below is the risk graph of the position as of the close Friday:

SPY July Iron Condor:

SPY closed Friday at 210.07; and the position is slightly under water by ($11) as of the close. We will continue to let the position work as per the guidelines, which are outlined below.

Below is the SPY chart showing the short strikes:

SPY 6 month chart

Trade Management:

The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.

Next week's economic news is highlighted by the FOMC meeting, and is summarized below:

Tuesday

FOMC Meeting Begins

8:30 am Retail Sales

8:30 am Import/Export Prices

Wednesday

8:30 am Producer Price Index

8:30 am Empire State Manufacturing Survey

9:15 am Industrial Production

10:30 am EIA Petroleum Status Report

2:00 pm FOMC Meeting Announcement

2:30 pm Janet Yellen Press Conference

Thursday

8:30 am Consumer Price Index

8:30 am Jobless Claims

8:30 am Philadelphia Fed Business Outlook Survey

10:00 am Housing Market Index

Friday

8:30 am Housing Starts

Next week is the planned entry for the RUT July monthly Iron Butterfly. We will most likely wait until after the FOMC meeting announcement on Wednesday and hope there is sufficient credit later in the week.

For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015, and can be found here: Link to Articles

Trade updates will be posted as appropriate.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin