BOTTOMS UP

Wow GOOG continues to rip higher and their blogger continues with bugs everyday. Anyhow looks like the blow off bottom has hit as the VIX hit its highest levels since 2004, TRIN it over 4, and according to one site I follow the down to up volume on the NYSE hit over 10-1 and 15-1 on the NAZ.

The DJIA has turned by about 200 points and the SP FUTS have climbed over 20 from their lows.

More importantly, on the SPX chart above, a distinct BULLISH DIVERGENCE has occurred as the index has made lower lows and the momentum indicators such as MACD Histogram and RATE OF CHANGE have all made higher lows. I have mentioned these before but now it is as crystal clear as it gets.

Also note that the markets turned from their lows as oil and the OIH group turned from their lows. OIH now higher on the day by $1.5 after being lower by about 5 beaners. If anyone thinks that because Zarqawi is dead the end of terror in IRAQ is at hand, well rethink the thesis as a new Zarqawi is probably already in place.