TRADE THE GAP

The gap fill trade played out pretty well as the NDX filled a little while ago and the SPX, well we still wait for that one to fill but it is certaintly well off its lows.

The semiconductors were the lead tell as they flipped to green fairly early in the session. NAZ internals also improved all morning although they have not flipped bullish as of yet.

Market internals show 1,500 more losers than winners with the Volatility indexes backing down from their earlier highs. Best performing sectors as I type, the SOX, airlines, trannies and techs. Bottom sectors include metals, brokersk, internets and financials. Oils are flat with the refiners a tad higher and the service cos a bit lower.

The gap was a good trade, however its now back to the short term trend lower in my opinion as the banks, brokers and big caps don't give much confidence that we are going to make a complete about face from yesterday's ugly action.