Another downer ahead of the Fed as the Dow fell 106 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is heading lower. It is back to heading towards the zero line which would mean a collapse. My guess is that the market will do whatever it has to in order to avoid that. The overall market was again weaker than the Dow with the NASDAQ leading the way lower. Inflation data came in higher than expected. Despite the two day decline, the S&P 500 is still short term overbought. Not sure what to expect tomorrow. The market did close well off of the lows so perhaps we'll turn things around tomorrow. Gold fell over $15 on the futures. The US dollar was up and interest rates had a slight gain. The XAU lost 1 7/8, while GDX shed 3/8. Volume was light. Gold dropping with inflation rising was not the outcome that I expected when I took on the current GDX call trade. It is the opposite of the past relationship. GDX is oversold and staying that way which implies more downside to come here. My January calls are on the way to the graveyard. It is just a matter of how much the loss will be. Mentally I'm feeling OK. The VIX was up again today and is back comfortably over the 20 level. It remains short term oversold despite the rise. If these short term indicators start to move back up we are going to see quite a drop in the stock market. I'm not saying that it is going to occur but with the summation index also in the danger zone again you cannot ignore the possibility. It would seem to be unexpected but not for those paying attention. Perhaps the Fed will have something to say that will turn stocks back up. We'll see. Europe and Asia were down overnight. All eyes and ears on the Fed tomorrow.