As we can see from the chart above the S&P 500 (NYSE:SPX) broke 2,100 today in intraday trading. We did however get an nice rescue in to the close and I still don’t know whether the stock market has been rescued again or we definitely now are heading down into sharp intermediate cycle low. The VIX Index has spiked past 18 and bullish option traders will be busy selling premium into this decline. However we are going to sit tight and hopefully get the sharp decline the market desperately needs at this point. With regards to Precious Metals we saw a big rally today in both gold (NYSE:GLD) and silver (NYSE:SLV) and the mining stocks. Gold was definitely trapped or stuck in a range for the past couple of weeks but today it confirmed that it now is trading out of that range. I would caution swing traders not to take profits too quickly here. There is plenty time to go in this intermediate cycle which should mean much higher prices ahead int he next few months.