More selling for the overall market today but the Dow only fell 45 points on heavy volume. The advance/declines were barely positive. The summation index is heading sideways. Stocks had a huge gap south at the open and could not recover. Once again the NASDAQ led the way lower by a wide margin as it lost over 500 points. The NASDAQ leading things lower is a negative. The S&P 500 dropped over a hundred points. The short term indicators there are heading lower with plenty of room to go. Perhaps if we see a high inflation print on Thursday the S&P will take out its recent lows. I'm not sure what is going on at the moment as the advance/declines for today don't match up with such a big daily decline. Gold fell $74 on the futures. The US dollar continued to rise and interest rates were down slightly. The XAU lost almost 16 points and GDX dropped 3 3/4. Volume was above average to the downside. The downside price movement is hopefully setting us up for the purchase of the GDX July calls. The problem however is that the short term indicators for GDX are moving lower with room to go. It is possible that the potential retest of the recent lows for the gold shares won't hold. The recent strength in the US dollar is also a concern as it is usually bearish for the precious metal. That said, I still might put in an open order for the GDX calls overnight. Mentally I'm feeling OK. The VIX was up today which fits a down market. The short term indicators there are trending higher. The VIX did get above the 20 level during the session but closed below it. Volatility has returned to the game. We are now just waiting on the market reaction to the inflation report on Thursday. Asia and Europe were down overnight. We'll see if we get any follow through selling tomorrow.