Before the open, the PPI came in a little "cooler" just like the CPI, which was no surprise. As for the reaction, it was similar to yesterday but much less robust. In the case of the metals, it also fell apart much faster (more on that below).

The S&Ps opened up a touch and began to slowly leak, with the chips once again in the lead to the downside (note the large H&S top on the SOX and SMH - watch the KOSPI tonight).

Around noon we hit a low and then turned and began to rally for no particular reason.

The remainder of the session was a nonstop rally that sent the S&Ps out near the best levels of the day with a gain of over a third of a percent. The SOX cut its loss to 2 percent.

The dollar was weaker once again, with the DXY losing nearly half a percent and dipping back to near 100, which needs to hold if the bulls are to remain in charge.

Yields also fell once again, with the curve steepening a little.

Commodities were mostly firmer, while crude specifically ended up only a touch, as it continues to chop sideways below yesterday's high around $82 WTI.

Gold chopped sideways overnight in slightly negative territory and then popped to as high as $4074 in the wake of the PPI. After rolling over with the equities and despite the dollar and yields continuing to fall, the metal eventually gave back the entire PPI rally and dipped as low as $4027 before then rebounding to print as high as $4080 before then backing off once again to end at around $40457 for a gain of just a freckle.

Silver acted similarly but was heavier overnight and only managed to bounce to as high as $58.75 in the wake of the PPI before plunging to a new low for the week and to as low as $56.60. From there, a bounce also appeared just like in gold, but unlike gold, silver was not able to take out the post-CPI high and instead failed and backed off to around $57.80 for the close for a loss of 2 percent.

The GDX opened flat and then slumped back to Monday's low before rebounding along with everything else around noon to go out back near the middle of the day's range with a loss of over a percent. That close also put the GDX back below the 5 dma, which appears to confirm that yesterday's brief pop above was indeed a one-day head fake. Thus, the bears remain in charge.

Once again the metals closed below their 5 dma too, so the bears remain in control there was well. Silver in GBP also interestingly made a new low for the slide today too. That's not to say that silver in GBP is something special, but as was the case on the upside, when important levels are being probed ahead of a breakout/breakdown, they generally get broken in various major currencies before doing so in dollars.

The odd thing about today's decline was that it happened on dollar weakness when oil was basically just sitting around unch. So, I'm not sure what to make of that, but it wasn't very bullish.

The metals and miners continue to act heavy, but buyers continue to rescue them just shy of breaking important support.

Last Wednesday's rescue led to a one-day bounce, so perhaps we will see the same tomorrow?

If, however, oil and the dollar rally overnight, then all bets may be off, especially if the KOSPI slides again tonight and pressures US equities again tomorrow.

My gold model moved back to neutral yesterday, and I will update it for subscribers in the AM once all my data is in. But I suspect it remained at neutral once again.

Positions: Short SPY, QQQ, MDY, and IWM. Long DBA, IBIT and STRC.

Metals: Long ZSL and GDXD. I sold my SLV 51 puts for today's expiration for 11 cents for a small gain (got lucky and hit the low) and then added more SLV 50 puts for tomorrow for 11 cents after everything bounced in the afternoon.