Open Trade Recap: July 2009

Below is a chart showing the NDX as well as its major support levels, major moving averages, and strikes I currently have sold for July 2009 options. The closest strike to the index (1200) is 17.58% otm. As I had said in my previous post, the gap up on June 1st has left support at about the 1439 level. NDX tested this support today and closed higher. At this point in time I don't believe this downturn is over, maybe just pausing briefly, so I am looking at 1425 to hold as the next support level. However, I still don't think this downturn will turn into the anything like the daily 5% swings the market had at the end of last year.