Two things I am confident with: mkt clearly lost the momentum and is very likely to pick up again.
So at this point I should probably first extend/improve my idea published ytday from partial to FULL profit taking on longs, meanwhile keeping the option put spread trades.
There are early (still weak) signs of a possible reversal. Some would immediately ask me if it is time to think about going and short the index? My opinion is that its not impossible the will strengthen, but from a risk/reward perspective I would not run to open shorts quickly. Not even if it drops from first resistence of 1820 down to next one at 1800 right now today.
I'd rather sell into spikes, first (again, regardless from which support the spike will occure first), then if we get more confirmation signals and momentum, we can size up the short position. Strict initial stops at 1855! + in situations like this it is wise to start watching the so called Breath indicators as well. If someone is interested in it, I can suggest a place to check some really useful ones (free stuff of course), developed by one of my friends, who I consider as a real expert of SP500 breath analyses. (I also look at his charts quite often)
Remember, trading is all about patience and probabilities!