Overall selling continued today but not for the Dow which rose 160 points on heavy volume. The advance/declines were positive. The summation index is still moving down. The NASDAQ led the way lower and the S&P posted a slight loss. The short term indicators for the S&P remain overbought but not completely. We do feel that the stock market is overdue for a rest. Our best case scenario would be for the S&P to make a new high with lower short term indicator values to form a negative divergence. That would be the time to try the SPY June puts. Markets rarely cooperate though. Gold rose $3 on the futures. The US dollar was lower and interest rates finished flat. The XAU dropped 3 1/4, while GDX shed around 1/4. Volume was light. Some of the short term indicators for GDX have begun to stall. GDX is hugging the long term up trend line that began around a year and a half ago. If you think that line will hold this is the spot to try the GDX calls. However I am not in that camp but of course I could be wrong. I am looking at the SPY June puts as the next trade. Mentally I'm feeling OK. The VIX was lower today which doesn't really fit with an overall down market. Its short term indicators are trying to move lower. Can't say that I know where the VIX is going at the moment. Option premiums are high as we roll into the June option cycle. I'll try and stay patient for now. Not a lot of economic data out this week and we are getting near the end of earnings season. Asia was generally lower and Europe higher to begin the week. I'll keep an eye on tonights headlines.