A rally springs up out of nowhere as the Dow soared 499 points on average volume. The advance/declines were better than 2 to 1 positive. The summation index is now trying to move sideways. Some short covering today to be sure as there was no news to speak of to cause buyers to suddenly appear. The S&P 500 is still oversold but not extremely. Perhaps this is the beginning of a move that takes us back to the down trend line that has been in effect since January. That is the set up that we're looking for. The NASDAQ led the way higher and that's a plus. We'll see if we get any follow through tomorrow. Gold slumped $35 on the futures. The US dollar continued higher along with interest rates. The XAU lost 4 1/4, while GDX slid 1 1/8. Volume was average. The gold shares need a rest. The short term indicators for GDX have now rolled over. Hopefully we'll get to a fully oversold condition which would set us up for the GDX May calls. GDX now sits on an up trend line that began in February. Another day like today will break that line. We'll keep an eye on it. Mentally I'm feeling OK. The VIX was lower today but failed to close below its 200 day moving average. Trend line support remains in place. The VIX also remains above the 20 level. Not getting a good feel for what is going on there. Today we had a good across the board rally for the major stock indices. How long it lasts is another question. Volume hasn't been all that great lately. So we'll see where it goes. Asia was mixed and Europe slightly lower in last nights trade. We'll keep an eye on the after hours headlines.