DRIFTING LOWER

So much for another attempt at the Pivot levels as the markets continue their southerly direction leaving yesterday's "buoyant and resilient" markets a distant memory.

The good news is that we are heading back to the 1260 support level on the SPX and a low 2 day RSI reading of 20; the bad news, the Volatility indexes have barely flinched and still trade near their 10 day SMA's. The 90 day SMA at 1275 has again provided resistance and hopefully the 50 day SMA at 1260 will provide support.

Just about all major market sectors are red with the worst being airlines, semis, metals, trannies and oils. The only green as far as indexes, the ISL, yes, the Israel country fund.

Market internals still ugly with 2,500 more losers than winners.