A rally springs out of nowhere as the Dow climbed 614 points on good volume. The advance/declines were better than 3 to 1 positive. The summation index is still moving lower but another day like today could get it moving sideways. The market is trying to hold the support here and doing its best. The short term indicators for the S&P 500 have turned up. Our call/put ratio is showing too much bearishness. GDP came in negative and below expectations. Stagflation is in the news again. The NASDAQ led the way higher today and that's a plus. Perhaps we can get some kind of rally going here with all the bears out there. However even if the market holds up here I do think that eventually the support at the 4200-4150 level for the S&P will be broken. Todays big rally out of the blue is classic down market price action. Maybe the rest of the May option cycle can bring us back to the down trend line and set up the SPY puts. Wishful thinking most likely. Gold was up $8 on the futures as it had a turnaround during the session. The US dollar continues to rise while interest rates were a bit higher. The XAU gained 2 7/8, with GDX up 3/4. Volume was average. My GDX May calls are still losers as they are too far out of the money. The poor entry is the doom of this trade most likely. However if we get another day like today for GDX tomorrow, we'll be back to the 36 level and perhaps this idea will have a chance. That is also wishful thinking. Mentally I'm feeling OK. The VIX dropped today but remains short term overbought. I'm still not getting a good idea of what is going on with this indicator at the moment. This still is an important week for stocks. So far we've held the support for most of the major averages. Unless there is a dramatic downside slump tomorrow the support will hold for now. My view is that the support will be taken out eventually. However with all the bears out there now perhaps some kind of rally will have them retreat. Maybe if we get some more short covering like we saw today the negative mood will abate. We'll see if we get any reaction to the employment cost index tomorrow. Europe and Asia were higher overnight. We'll close out the trading week tomorrow.