The first day of summer and a rally begins. The Dow gained 641 points on good volume. The advance/declines were around 3 to 1 positive. The summation index is still moving lower but another day like today would start to change things. Monday was a market holiday so we'll have a short trading week. It's 2 days in a row up for the S&P and the NASDAQ. Most likely some kind of bottom is in place. The short term technical indicators for the S&P are still oversold so we've got room to move higher. We're still pretty far from the 50 day moving average. Resistance begins to come in at around 3900 and then the down trend line after that. But perhaps we can get some break from the selling in the near term. Gold dropped $8 on the futures. The US dollar was a bit lower and interest rates were steady. The XAU was up 1 3/8, while GDX added 1/8. Volume was light as there is not interest in the gold shares. My GDX July calls are solid losers and perhaps I should just take the 50% loss right here. I'll give it until the end of the week so see if they come to life. Doubtful. Mentally I'm feeling a bit tired. The VIX was lower today and we're still on the overbought side here in the short term. Plenty of room for the indicators to move lower. It was a great start to the week in the stock market for the bulls. We did get blown out to the downside on most indicators last week. Never did get to 3600 on the S&P but got close which is the level I'm still looking for at some point. But for now we'll be looking at today as the start of some kind of summer rally back up to the resistance zones. After that, who knows? Europe and Asia were higher in last nights trade. We'll keep an eye on the overnight developments.