The rally took a break today as the Dow lost 96 points on light volume. The advance/declines were positive. The summation index continues higher. As long as the summation index is moving up, the path of least resistance is higher. The S&P 500 remains short term overbought. It is also above the upper Bollinger band which doesn't last that long. Perhaps we'll move sideways before heading to new all time highs again. The overall market wasn't as weak as the Dow and that's another plus for the bulls. We'll get the beige book tomorrow and perhaps that will get things moving one way or the other. A caveat here is the light volume. GE was off a few cents and the volume was pretty light. Gold was up over a dozen on the June contract as the US dollar conitnued lower. Interest rates dropped as well to help the precious metal. The XAU was up almost 2 1/2, while GDX gained 1/2. Volume was light here as well. I would have liked to have seen the gold shares act a little better today. Getting short term overbought here but not all the way there yet. GDX has made it above its 50 day moving average again but it hasn't been able to stay above there for the past six months. My GDX April calls are still in the black with 8 days to go in this months option cycle. Mentally I'm feeling OK. The VIX was barely higher today and that fits with the small decline. We've been oversold here for a while now on the VIX and that won't last much longer I believe. Solidly below the 20 level though and as long as that's the case I don't see any major decline coming. Of course, I could be wrong. I still think that stocks are going to run up into the April option expiration. After that, we'll see. Most of the major stock averages are overbought on both the short and medium term. Thay usually stay that way during multi-week rallies. Asia was mixed with Europe higher in last nights trade. We'll keep an eye on the overnight developments.