TIME?

The markets are off their highs as it looks like traders saw the old 1280 resistance line on the SPX and many decided to beat the rush and sold.

Market internals are no better than they were at the open so maybe a tell there that this rally will not last much longer.

My plan is to scale out of the SMH position and scale into a short QQQQ position as the volatility indexes slump further bringing them to 7%/8% below their 10 day SMA's. The VXN, the volatility index of the NAZ 100, is down 8% on the day and is 13% below its 10 day SMA; so some sell signals definitely appearing.

In addition, Nasrallah says its the "wrong time" for public discussion on disarming Hizbollah, and they "can't be disarmed by force." So we will have some interesting stuff going on before you can say Ahmadinejad.