The day began with a huge gap to the upside but then sellers took over for most of the session. The Dow finished with a gain of 260 points on good volume. The advance/declines were positive. The summation index is trying to move back up. The S&P 500 closed at a new all time high. It remains short term overbought and has stayed that way during rally mode. Waiting on the inflation data out tomorrow which should not pose a problem. I'm on the sidelines for now regarding the SPY options but am still interested at the October puts at some point. Gold was up $11 on the futures. The US dollar was lower and interest rates were a bit higher. The XAU was up 2 1/3, while GDX added 1/3. Volume was about average. The gold share rally continues and GDX remains short term overbought. Once again I am not going to chase it here but that has been the wrong strategy lately. However for me it it too late to try the call options there now. Mentally I'm feeling OK. The VIX finished basically unchanged. Still short term oversold and still above its 200 day moving average. Not sure what's next here on the VIX. Just waiting on Fridays inflation data and getting this trading week in the books. Europe and Asia were higher overnight. We'll close out the week tomorrow.