We had a nice intra-day rally going on but then sellers showed up to spoil things. The Dow had a downside reversal as it opened higher and closed lower. It fell 19 points on heavy volume. The advance/declines were slightly negative. The summation index continues to stall and is trending lower. Both the NASDAQ and S&P 500 posted gains and closed at new all time highs. The NASDAQ led the way but along with the S&P fell well off from the highs on the session. The short term indicators on the S&P remain overbought. I do want to own some SPY puts at some point during the August option cycle. Premiums for now remain high. Ideally I'd like to get the puts ahead of the Fed announcement next week. The market may not cooperate though. Gold rallied fifty bucks to begin the week. The US dollar was lower along with interest rates. The XAU gained 7 1/8, while GDX climbed over 1 3/4. Volume was a bit above average. The short term indicators for GDX have turned up. Could this be the beginning of a move higher implied by the contracting Bollinger bands on the daily chart? Should we now just jump into the GDX August calls? Always plenty of questions in the game without clear answers until everybody else sees them. Mentally I'm feeling OK. The VIX was higher today which doesn't fit an upside market. The Bollinger bands here are getting very tight which tells me that something is about to erupt here. The VIX is already pretty low so my guess would be we are about to see volatility return with a vengeance. I could be wrong. Perhaps we'll see a sharp rally instead. Either way something is about to happen here. Europe finished sightly higher and Asia was up with the exception of Japan. I'll keep an eye on the overnight headlines.