GDX, GDXJ both pulled back today as the precious metal sector cools. The dollar was up marginally. Several companies have reported strong earnings today UPS, FCX, MCD, NFLX, EBAY. Meanwhile, some banks continue to struggle. No one is sure where the bottom is for banks, especially BAC, the end game could be nationalization hence banks are trading like utilities with low PE ratios. Fannie / Freddie are required upwards of $360 million in bailout money. This isn't a surprise,it only further proves government programs / agencies do not work.
What we are seeing here is the market wanting to pull back, a much needed dollar reprieve, while certain names are breaking out on strong earnings. It's a mixed bag for the week. AAPL and IBM took a hit Monday after reporting decent numbers. A correction here is healthy for the market.
QE2 and the November elections are still on the table, some of which is priced in. By the second week of November we will have a clearer picture as to where the market is headed as the Fed aims to fight the deflationary forces they so fear.