3:00 AND NOTHING

The SP 500 (SPY) continues to bounce around between it's Pivot (130.5) and resistance level of 131. The internals now show about 500 more winners than losers and I suspect it will get worse before the day is over. The markets have worked off the oversold condition of the last few days and now may again begin a trip lower.

The clues that I look at for hints of future market direction are 1) the techs and the semis, 2) market internals 3) Volatility index levels and 4) the financials/brokers. None of these tells are doing particularly well today even though the much discussed (CNBC) DJIA is plus 67 .

I think the general market (SPY) will have a hard time gaining traction until we see the Volatility Sisters lift. The VIX is still sitting a tad under its 10 day SMA and the VXO is more than 5% below it. Even with the recent crummy action in the QQQQ/SMH, the VXN still sits around 3% below its 10 day SMA.

I am going to wait for the anticipated lower prices to buy and I suspect we may see the 50 day SMA on the SPY (129.5) before the end of the week. That maybe the next stopping point before we get another oversold bounce.