Bouncing back in a big way today as the Dow gained 614 points on heavy volume. The advance/declines were positive. The summation index is heading sideways. The rally was led by the NASDAQ which is a plus for the bulls. Inflation data came in where expected. There was a gap higher at the open and after bouncing around stocks took off to the upside. The short term indicators for the S&P 500 are now moving up. The S&P is trying not to roll over now as it trades in a channel defined by the levels of 7600 and 7250. Todays breadth wasn't all that impressive considering the move higher for stocks. I'm still in the camp for caution as the market will have to prove that it wants to go higher for me. Gold was up $72 on the futures. The US dollar got crushed yet interest rates finished a bit higher. The XAU was up 12 3/4 and GDX climbed over 3 points. Volume was average. The short term indicators for GDX are back to moving up with some almost overbought. At this point it appears that I've missed the GDX August call trade but we'll see. I'm not going to chase it here but that may not be the right strategy. Mentally I'm feeling OK. The VIX had a big drop which fits with a strong upside day. The short term indicators here are heading down with conviction. After a one day breach of the 20 level the VIX is now comfortably below there. It looks like the VIX wants to continue to decline but my views of this indicator haven't been correct lately. Europe and Asia were mostly higher overnight. We'll close out the week and the month tomorrow.