The intense volatility and bearish outlook that characterized the beginning of the trading week has subsided a tad as the week has progressed. The Shanghai Composite Index managed to stage a 5.40% recovery overnight and the Dow Jones put in its second big up day. The Vix index has backed off the lofty 50 level and is trading in the mid-20s. After failing to break through its 100 day moving average at $1,164 on Friday and Monday, gold succumbed to heavy selling pressure along with basically all other markets to kick off the week. It is now down for the fourth day in a row but founds bids materializing in the low $1,120s today. Silver hit a five year low yesterday and traded down to just under $14 on the December futures contract. It staged a nice recovery today despite gold not doing much and $14 is clearly the major support level to watch.