I was half expecting a bounce today, based on two factors. First, the CBOE put/call ratio spiked up to 1.38 yesterday after reaching as low as 0.57 in December; second, the RSI on $SPX touched 30, where the previous lows in August and November occurred.
It so happened that I closed out my SPY puts around 2pm just as a battle around 138 was waging. The reason: I was taking my daughter to Border's. It pays to be a good father!
It's hard not to view today's action as an oversold bounce. I'm expecting this bounce to go as high as 1480-90 where I'll try to re-establish a short position.