Selling to start the week as the Dow fell 398 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is now moving lower. We were lower from the start and just kept on going. The NASDAQ led the way down and that is not a plus. The S&P 500 is still in a sideways channel but appears to be ready to break to the downside. Whatever I thought about the S&P going on to making new all time highs here has changed. The short term techncial indicators on the S&P have rolled back over. It appears that I am too late for the SPY October puts but my open order remains out there. Fridays price action now looks like the final bounce before we head south. Premiums on the SPY puts have increased. Gold was off $4 on the futures. The US dollar finished flat and interest rates continued to rise. The XAU dropped 2 1/8, while GDX was off 1/2. Volume was light. GDX has now reached short term oversold but not completely. Do we switch ideas here and try the GDX October calls? Not sure as all the recent declines for GDX have made it below its 50 day moving average and we are not there yet. But perhaps we can start to look at the Novermber calls there. Mentally I'm feeling OK. The VIX was up today and now is firmly above the important level of 20. The VIX is also now short term overbought and it usually doesn't stay that way for long. It is above the upper Bollinger band as well. So it is hard to make a case for chasing the SPY puts here unless the VIX at least turns around from these levels. But the more likely scenario is that I've missed this opportunity for the October puts. Inflation data out later this week on Thursday and Friday. That should provide a catalyst for more price movement one way or the other. Asia was up with the exception of India and Europe was generally higher. We'll keep an eye on the overnight developments.