The selling continues today as the Dow dropped 116 points on light volume. The advance/declines were negative. The summation index is trending lower. We had a big gap down at the open and then traded sideways for the rest of the day. The overall market fared much worse than the Dow with the NASDAQ leading the way down. We are still waiting for the NASDAQ to confirm the new highs made by the Dow and S&P 500. If that doesn't occur we will be heading lower. The short term indicators on the S&P have turned lower but remain overbought. I am considering the September SPY puts but the premiums are pretty high. The mood of the market seems to be changing here. Gold was down $74 on the futures. The US dollar was slghtly higher and interest rates slightly lower. The XAU fell 10 7/8 and GDX dropped 2 7/8. Volume was average. The short term indicators for GDX are still overbought. Mentally I'm feeling OK. The VIX was up today which is what to expect with a down market. The short term indicators here are moving higher but most remain in the oversold range. The VIX is still well below the 20 level. Three days left in the August option cycle and we'll remain on the sidelines for now. Considering the SPY September puts and the GDX September calls at the moment. Asia was mixed and Europe generally down overnight. We'll see how it goes tomorrow.