Continuing lower as the Dow dropped 292 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is strying to turn down. No buyers in sight as any attempt at a rally is being met with selling. Short term oversold and now medium term as well. I did purchase some SPY September calls this morning and they are of course losers as the market keeps going down. This trade is already in the cut the loss situation. When the normal technical patterns don't work, you know that we're in for something different. I'll be getting out of this trade most likely tomorrow and keeping an eye on the SPY October puts. Gold was up a few bucks on the weak inflation data. The US dollar finished little changed and interest rates dropped. The XAU and GDX had slight fractional gains on light volume. I'm still considering the GDX October calls. Mentally I'm feeling OK. The VIX bounced around today and finished about hwere it started. It still closed below its 200 day moving average. Overbought in the short term here for the VIX and that would imply that we should see some stock gains. However that is what it implied on the close yesterday as well. Overdue for some kind of sustained bounce in stocks for at least a session but it doesn't appear to be happening. A lot of the daily index charts are looking pretty negative as well. Three days left in the September option cycle. Retail sales data on Thursday could be a market mover. Europe and Asia were mixed overnight. We'll see what tomorrow brings.