OPENING OBSERVATIONS

Low and behold a flip flop kind of morning as the market internals point up and the big cap indexes don't. The IWM is higher by .3% while the DJIA and the SPX are lower although just a tad.

Finally the SMH is moving higher (+1.8%) on the heels of a rippin KLAC ADI and NVLS.

The DJIA is being held back by GM MO BA and XOM. Leaders on the DJIA include INTC AXP VZ and JPM as 18 of the 30 are higher. My bet is the DJIA will play a little catch up and the opening gap will be closed.

Strongest sectors/stocks include KLAC HHH YHOO SMH EBAY trannies, GOOG, techs, AAPL, airlines, internets and consumers. Weakest stuff, metals, biotechs, and oils with oil service unchanged.

Martket internals point higher with 1,300 more stocks higher than lower with NYSE a bit better than NAZ. Banks and brokers trade unchanged with GS acting best as it continues it march to $200.