Sellers had the upper hand today as the Dow dropped 365 points on light volume. The advance/declines were better than 3 to 1 negative. The summation index is moving down. It's heading towards the zero line again and we all know what happens if it makes it through there. We will see new lows for the decline in the S&P if the zero line doesn't hold. Short term oversold and staying that way for the S&P 500. The NASDAQ led the way lower and closed at a new low for the year. The light volume isn't helping this week as it tends to skew things one way or the other. For now the bears are back in control. Gold was off ten bucks on the futures. The US dollar was higher and interest rates were flat. The XAU lost 3 3/4, while GDX shed 7/8. Volume was very light. The short term indicators for GDX are beginning to turn lower and the Bollinger bands have contracted which implies a big move is coming. After todays price action it looks like it could be to the downside. I still like the calls here but we're in a wait and see mode at the moment. Mentally I'm feeling OK. The VIX was higher today which fits the market decline. Not sure where this indicator is headed next. The bulls will have to step up here soon or this could get ugly pretty fast. With such a lack of participation it's easy to get things going one way or the other. Not sure how to interpret whether this decline is for real or not but you have to respect price. Perhaps we'll have a better idea of what's going on after tomorrow. Europe and Asia were down with the exception of the Hang Seng. We'll keep an eye on tonights trading.