Another gap down to begin the trading day except this time the selling continued. The Dow fell 410 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is heading down. The NASDAQ led the way lower and that is not a good sign for the bulls. One day does not make a trend though. The market came back in the last couple of hours or it would have been worse. The S&P 500 did break the up trend line at 5800 but bounced back to finish close that level. The short term indicators for the S&P have rolled over with plenty of room to go. I'm looking at the SPY November puts now but the premiums are pretty high. We'll see if there is any follow through selling tomorrow. Gold took a breather and dropped $30 on the futures. The US dollar was higher again and interest rates were up slightly. The XAU fell 3 1/3, while GDX was off 7/8. Volume was average. GDX remains short term overbought. No trades in mind here for GDX right now as we will wait for it to return to short term oversold before trying the calls there. Mentally I'm feeling OK. The VIX was higher today which fits a down market. Still short term oversold on the VIX. The Bollinger bands here are beginning to contract which would imply that a big move is coming for the VIX. It remains above its 50 day moving average. I think that I'll let this week go by before committing to the next trade. Perhaps premiums on the options will come down a bit depending on the rest of this weeks volatility. We'll see. Asia was mixed and Europe lower overnight. I'll keep an eye on tonights headlines.