We didn't get the upside follow through that we were looking for as the Dow fell 194 points on good volume. The advance/declines were positive. The summation index is moving higher. We'll still give the bulls the benefit of the doubt though because yesterdays gains were stellar. The NASDAQ was slightly higher. Inflation data today came in a bit lighter than expected. Employment numbers out tomorrow. It is interesting that the S&P 500 stopped right at the 4100 level and turned around. It remains short term overbought and right at the long term down trend line that has been in effect since January. My thinking is that we are going to break through that line and call an end to the bear market. Only a dramatic downside slide from here would change that view. I could be wrong and often am. Gold took off on the futures and gained over $50. The US dollar dropped again along with interest rates. The XAU rose 3 2/3, while GDX gained a point. Volume was very heavy for the gold shares. GDX is at the 30 level now and deserves to take a break. This is where the long term resistance comes in. We will be looking to purchase some GDX calls on any pullback. Todays volume could be an upside blow off, which would mean that gold and the gold shares are about to take a break from the recent rise. If so it would give us a chance to get on board. If not gold will simply continue to plow on higher. Both gold and the gold shares are pretty far away from their 50 day moving averages. A move back towards there would be the logical conclusion. But it's no secret now that gold is attracting money. Mentally I'm feeling OK. The VIX closed below 20 today and remains short term oversold. Medium term as well. Tomorrows VIX movement could tell us a lot about where we go from here. If it keeps moving lower, that would be bullish for stocks. But if it jumps tomorrow and stocks have a decent decline we can't rule out that the bear still lives. However I really think that the market will continue its rally from here. Europe and Asia were up last night. We'll close out the trading week tomorrow.