Stocks retreated today as the employment report came in a bit better than expected. The Dow fell 348 points on light volume. Light volume shows little interest so it wasn't a rush to the exits. But not a lot of buyers around either. The advance/declines were better than 2 to 1 negative. The summation index continues to move up and has now passed upwards through the zero line. The NASDAQ led the way lower. Despite todays drop the S&P 500 remains short term overbought. Ditto for most of the major stock averages. A couple of weeks left in the June option cycle. No SPY trades in mind for now. Gold dropped $17 on the futures. The US dollar was up and interest rates were a bit higher. The XAU was off 3 1/8, while GDX shed 3/4. Volume was light. The gold shares continue to mirror the overall stock market. June in general isn't usually a good month for gold appreciation. I'll probably look out to future months for the GDX calls at this point. Mentally I'm feeling OK. The VIX was only slightly higher with todays market drop. The line of resistance to from April to move lower remains in effect but the daily chart still looks like it wants to go down. The VIX remains short term overbought. This weeks price action can be described as a digestion of last weeks big rally if you're a bull. The bearish case would be that there was no upside follow through to the gains. The week was basically sideways. We'll probably know more as we move on but continuing sideways would not come as a surprise as the market tries to make up its mind what to do here. I'll try and remain patient for the S&P to make it back up to resistance and go from there. We'll be going over the charts this weekend as usual. Asia higher and Europe lower to close out the week. It's Friday afternoon and time for a break.