11:00 UPDATE

The markets are acting very well today with the best tell of all, the internals solidly green with almost 1,800 more winners than losers.

The best performing sectors are the Cyclicals, Reits, Retailers, Oils, Metals and Semiconductors. The VIX is down 1% to 12.45, but is still trading a few percentage points above its 10 day SMA indicating this rally may have some legs up to the SPY 130 area.

UNH continues to be a house of pain as it trades under 50. MS and JEF, my two brokerage plays, are acting well as GS for whatever reason takes a breather and is only up a dime. MER is lower on what were thought to be excellent numbers and Lenny's INTC continues to drift lower at 19.04.

My take is that if the market internals hold at these levels the play of the day will be to buy the pullbacks as we probably get an afternoon lift higher.