The selling continues as the Dow fell 427 points on heavy volume. The advance/declines were better than 2 to 1 negative. The summation index is moving down. The NASDAQ continues to lead the way lower and that remains a negative for stocks. The S&P 500 lost over 100 points again as it trys to hang on at the 200 day moving average. The short term indicators here are still oversold. Not sure what's next with the employment numbers due tomorrow. Still hoping that the S&P can make it back to the down trend line that now comes in at 5900 so that we can try the SPY March puts. The market is not cooperating though and it appears that the 5600 target will be reached first. Getting pretty far from the 50 day moving average on the S&P. Gold was off $8 on the futures. The US dollar was just a bit lower and interest rates finished mixed. The XAU fell 1 2/3, while GDX shed around 1/3. Volume was light. GDX remains in an uptrend and I might place an order in for the March calls overnight. Mentally I'm feeling OK. The VIX was up and is well above the 20 level which means increased volatility. We are certainly seeing that. The short term indicators remain overbought as they have been for about a couple of weeks. This is a rare occurrence for the VIX lately as it usually stays extended on the oversold side. But this can happen in stock market declines which is where we find ourselves. The NASDAQ is also pretty far from its 50 day moving average and already below its 200 day moving average. It has been almost a straight line down here and some kind of snapback is overdue. The long term uptrend line here comes in at 17400. If for some reason that level didn't hold we would be in bigger trouble than we are now for the bulls. Asia and Europe were higher overnight with the exception of the FTSE. We'll see how the market reacts to the jobs numbers tomorrow.