NOON LOOK

Markets have moved up this morning on the heels of lower oil prices; and is the relationship between oil and the markets finally reverting back to the old days when they did not go up together?

Anyhow, we are running up to the major resistance areas of 1310 on SPY, 11,400 on DJIA and 1,585 on the NAZ 100.

The first ETF selling off this morning after leading higher is the SMH as it is down 1/2% from it's morning high. I expect the dips to be bought as long as the market internals stay strong; now with 1,800 more winners than losers.

Sectors outperforming today include airlines, trannies, retailers, homies, internets, semis and small caps. Oils and metals continue to be losers while banks and brokers trade near the unchanged level.

Be aware that the SPY has moved up to a high 80's reading on the 2 day RSI and that is usually a pretty good sell signal. I think we may get a few spikes into the close, but today is probably a good day to sell down some inventory.

On the trading radar is the action in the SPX over the last nine trading days. A whole 17 points is the range and small ranges eventually break one way or the other. My guess is we go lower as September is near and we know what kind of track record that month brings.