Moving up on lighter than expected inflation data but the Dow only gained 69 points on light volume. The advance/declines were positive. The summation index is trying to move higher. The NASDAQ led the way, up over 200 points. The S&P 500 had a decent gain of fifty for a new all time closing high. It appears to be breaking to the upside from the recent sideways activity. The short term indicators here remain overbought and staying there. No overhead resistance and the bulls are in charge. Gold dropped $63 on the futures. The US dollar finished flat and interest rates were lower. The XAU was off 10 points and GDX lost 3. Volume was pretty good to the downside. The short term indicators for GDX have moved lower but remain overbought. Perhaps this is the beginning of the awaited pullback towards the broken down trend line that we've been looking for. I still have my open order out there for the GDX August calls but with only six days left in the August option cycle I might have to move out to September. We'll see how things go tomorrow and take it from there. Mentally I'm feeling OK. The VIX was up a touch and that doesn't fit with an overall positive day for stocks. Oversold and staying there is the story here. We are still waiting for the NASDAQ to confirm the new all time highs for the Dow and S&P. Also waiting on the TRAN to confirm the move higher for the Dow. Asia was mixed and Europe lower again. Retail sales out on Friday and we'll finish the trading week tomorrow.