BROKEN RECORD

I am beginning to feel like a broken record, but watching this VIX is getting me nervous. It just closed over 14 which is the highest since last November. It is about 15% above its 10 day SMA so I guess Monday will be a very interesting day. I am sure there are lots of nervous traders and investors who will be very curious to see where the futures begin trading on sunday evening.

The internals never blinked as they closed near their lows of the day with about 3,500 more losers than winners. The Oils got pounded as the OIH took most of the heat down over $6. Puts for sale? The metals also got smoked as the major metal indexes lost about 4%.

The one sector that gives the bulls some hope that an end to the selling may be near is the Semis. The SMH closed the day down 25 cents or .7% which is a far better showing than the major market indexes (-1.3%).

Tony Dwyer of FTN, who has been spot on with his market forecasts, appears to be shrugging this selling off as a pullback in a longer term bull phase. I tend to agree but next week should be quite the tell.