Volatility with a vengeance today as the Dow fell 649 points on heavy volume. The advance/declines were better than 2 to 1 negative. The summation index is trending lower again. The NASDAQ continues to lead the way down and that's a negative. The S&P 500 opened higher and closed lower for a one day negative reversal. It dropped over 100 points. The short term indicators are oversold and staying there. The premiums on the SPY March puts were very high and I did not purchase any. It is probably too late for that idea now as the bounce only lasted for a day. I'm still looking for 5600 as a downside target on the S&P. Gold was up fifty bucks on the futures. The US dollar was lower and interest rates continue to drop. The gold shares started out positive but then followed the overall market lower. The XAU dipped 7/8 and GDX finished flat. Volume was light. GDX remains short term oversold but not completely. I will probably put in an order tonight for the GDX March calls again. This may be the way to try something in the March option cycle where the option premiums aren't overpriced because of the volatility in the overall market. But we'll see. It's fluid situation as usual. Mentally I'm feeling OK. The VIX was higher today and closed above the 20 level. Still short term overbought with a little room left to go higher. The VIX rarely stay overbought for long. That tells you that we are not in the usual market conditions and that the decline has legs. If the summation index starts to really turn down, the zero line will be upon us. If that happens the drop will be greater than the 5600 level that I'm looking at. I'm not sure what's next but we will be paying attention. Europe was up and Asia genrally higher to begin the trading week. We'll see how things go tomorrow.