THE CLOSE

The markets closed near the highs of the day with the SPY ending at about 131. The big winner on the day was the NAZ +15 and the SEMI's +1.5%. The market internals closed about 1,500 to the green and were slanted bullish all day. Big Babys INTC and AAPL are set to report any minute and will no doubt impact the markets tomorrow.

More importantly, in my opinion, the VIX and the VXO are now stretched about 7% from their 10 day SMA's and the book says the markets will have trouble making headway from here. In addition, the 2 day RSI on the SPY is 94, IWM / 97 and QQQQ / 83.

The final point is the giddy sounding anchors on CNBC. Maria all excited about 5 year highs on the NAZ and Pisani noting how well the markets did today in light of yesterdays big ramp. I bet it won't be long before we hear " the market is selling off today as it had a terrific run over the past few days." Making money in the markets is about anticipation and determining where the markets are going and not where they have been.