Lower again today for the most part as the Dow fell 229 points on light volume. The advance/declines were shy of 2 to 1 negative. The summation index is heading lower. The NASDAQ managed to post a gain but was off of the best levels for the session. We did get follow through selling for the S&P as it is getting short term oversold. Once again I am very confident that tomorrow will be an up day. Not sure what the reasons will be but technically it fits our work. If tomorrow is lower though, then the market is in much more trouble that I thought. But we don't think that will be the case. The premiums on the SPY May calls were too expensive in our view to try a short term trade there but in retrospect that might have been a mistake. We'll see what happens. Gold was off $5 on the futures. The US dollar was lower and interest rates ticked up. The XAU was down 1 1/3, while GDX shed 3/8. Volume remains pretty light here. GDX opened higher and closed lower for a one day downside reversal. It is short term oversold but not extremely so just yet. I did adjust my open order for the GDX May calls a couple of times and it eventually got filled. So we are in the next trade. Not sure how long we'll hold on to this idea and I don't know if the gold shares will follow the overall market higher tomorrow. Todays price action was pretty negative. However on the GDX hourly chart we have a potential positive RSI divergence that would play itself out tomorrow if GDX follows up with a gain. If NEM has a decent earnings report that would also help the bullish cause for the gold shares. Or gold and the gold shares could just continue lower as the market always simply goes where it wants. The light volume here is a concern. Mentally I'm feeling OK. The VIX was up slightly today but did bounce around back and forth. The short term indicators here are still pointing up which would imply more decline on the horizon. Still below the 50 day moving average and the 20 level. GDP on tap tomorrow and that could be a market mover. Earnings will be coming out as well. The TRAN got slammed again today and perhaps that might be the story that we should be looking at going forward. With the summation index now heading down, the path of least resistance should be lower. But we still think that Thursday will be positive. Europe and Asia were lower with the exception of Hong Kong. We'll keep an eye on tonights developments.