AFTERNOON UPDATE

The markets continue to hang tough although off the highs of the day. I suspect we get another surge into the afternoon as the Small caps and Semi's lead the markets. In addition, the market internals arel keeping a bullish tilt with over 2,300 more losers than winners.

The best performing sectors today include the Small guys, tech, brokers, retailers, oils, biotechs and metals. Losers include the internets (HHH), YHOO EBAY AAPL and MSFT.

My question is if the Oils are doing this well today, what happens when Iran rejects the Condi proposal?

And what about those Volatility indexes. Seems like they alternate days when they go up or down 9%. Today its a crushing which might be bullish. And don't we all miss Erin when she is away on vacation?