UPDATE 2:00

Markets are sitting at about the same place they were earlier this morning. The Semis continue to act doggy compared to other sectors and that does not bode well. The internals are now at 1,160 net gainers and I am none too impressed with this reaction to MERGER MANIA MONDAY.

The best performing sectors have also flipped to some old favorites the OILs and the METALS. It will be interesting to see if the SPY gets rejected again in the area just north of 129. It would not surprise me.