Look at the price action from last Friday. A huge selloff and finishing on the lows to end the week.
"Textbook" analysis would say we're due for followthrough. That finishing on the lows on a friday like that would lead to more capitulative price action.
I guess not.
Right now, the S&P is up over 2.75%. The Nasdaq is up over 3%. Facebook is well off the lows.
Markets move in cycles. They aren't up-down cycles, they are up-range-down-range cycles. Right now, we've seen volatility expand yet this price action is more rangebound than anything else. Don't expect a trend to emerge, just expect the market to oscillate around 2700 for a while.
In terms of new trades... there aren't any. I'm not going to try and add more bull put spreads into a market that just had this move. What you should be doing now is starting to scale out of all the put spreads you sold over the past week. Use the execution prices provided, and if you're super concerned about this market, then just take off one or two positions that you "hate" the most into this kind of move.
I'll be sitting on my hands and will watch to see how the market trades into 2700.