Bouncing back as the Dow rose 307 points on light volume. The advance/declines were positive. The summation index is moving lower. The jobs report was better than expected and markets rallied. The NASDAQ led the way higher and that's a plus. The short term indicators for the S&P 500 are turning back up. Does the rally simply continue from here? That is the question and I'm not so sure. Today could be just the beginning of a snap back to the recently broken up trend line. The weak volume provides a clue there. Inflation data out next week and my idea says the numbers will be high. But we'll have to see what the expectations are. How the market reacts to the data on Wednesday and Thursday will determine the path for next week. I'm looking at the SPY April puts but the technical set up is not as solid as I would want. Gold just continues to power higher regardless of the data. The futures there climbed $34. The US dollar was up but off from the best levels on the day. Interest rates rose. So as you can see for gold it doesn't seem to matter what rates, the dollar or the stock market is doing. The XAU was up 3 3/4 and GDX climbed over a buck. Volume was heavy and the money just pours in to the gold shares. GDX is extremely short term overbought and about as far away from its 50 day moving average as it can get. Can it get move overbought? Yes. Can it get further away from the 50 day moving average? Sure. But the gold shares along with gold are moving straight up. And we all know how that ends. The trouble is you don't exactly know where and when it will turn around. That said, I am now looking at the GDX April puts for a short term trade. We already missed this leg up in GDX but it has to run out of steam at some point. The problem is that so much money is behind this move trying the puts could be the equivalent of stepping in front of a freight train. Mentally I'm feeling a bit tired. The VIX was lower today but still closed above its upper Bollinger band. The short term indicators are trying to turn down. Not sure what to expect next here for the VIX but moving lower seems to be the most likely probability. That would coincide with stocks moving back up. There will be plenty to ponder when going over the charts this weekend. There's still two weeks to go in the April option cycle so plenty of time for some type of trade. Europe and Asia were lower to close out the week. It's Friday afternoon and time for a break.