WHAT NEXT

The markets are looking ugly once again and is there any hope for all of the dopey longs expecting a bounce (since last Friday)?

The market facts continue to point to way oversold and the VIX is again back over its "MAGIC" 110% of its 10 day SMA number. The VXO is up 11% just today and is also giving the buy signal. I don't like to lose a lot of money and therefore if the SPY pierces the 128 number on a closing basis, I will probably bid farewell to my index longs and go to the sidelines. I can always buy back at 129 right?

The market internals are ugly red at 3,000 more losers than winners, the 10 year Bond is back to a yield of 5.18% and GOLD is back up over 690.

Crude is lower on the inventory numbers and the OIH is down a buck. The other green I see on my screen, surprisingly, is GOOG and SNDK. The brokers are getting hammered again as GS is back down under the 150 level (15*15= 225 anyone?) from 170 in late April. We probably should have taken notice as that group was the first to head lower a few weeks ago. Maybe they will give a hint of a market rebound sometime soon.