We saw an incredible one day upside reversal today as the market opened and dropped lower only to turn around and finish decidedly higher on the session. The Dow, which was off over 700 points early, made it all the way back and finished with a gain of 124 points on light volume. The advance/declines were positive. The summation index is trying to trend sideways. The inflation data came in where expected but stocks sold off hard early on. The comeback was led by the NASDAQ which added over 2% for the day. The S&P 500 finished up almost sixty points after being down around ninety. The short term indicators there are now at mid-range or above. My SPY September put idea will have to be put on hold for now. We now have to ask if new all time highs are back in the picture. One day does not make a trend but it was pretty impressive. Gold was off a couple bucks on the futures. The US dollar finished a little higher along with interest rates. The XAU was up 1 1/3, while GDX rose a bit over 1/8. Volume was light as the gold shares did not follow the overall markets good gains. The short term indicators here have turned up. I'll try the calls here if they roll back over and the premium is what I'm willing to pay. Running out of time now in the September option cycle. Mentally I'm feeling OK. The VIX was lower but remains above its 50 day moving average. The short term indicators are now below mid-range and pointing lower. This implies more near term gains for stocks. Perhaps the inflation data tomorrow will be benign as well. Asia and Europe were generally lower in last nights trade. We'll see what tomorrow brings.