COMPLACENCY RULES

The markets lost about one third of their gains in the afternoon trade as complacency seems to be the word. The VXO trades under 11 and lost about 4% on the day.

Market internals held firm as they closed with about 2,000 more issues higher than lower. On a sour note, the brokers still do not act well as GS MS MER and BSC all closed in the red.

The major sector gainers on the day were airlines, homies, retailers, semis, trannies and internets; oils metals and brokers were the laggards.

Indian favorites, CTSH and INFY are approaching new 52 Week highs and those are a couple that I will be keeping for a while, maybe a long while.

Sell signals did hit the SPY today as it traded with a 2 day RSI over 90 at mid session. I expect lower prices into the rest of the week as traders start to disappear into the three day holiday.