AFTERNOON LOOK

Markets continue to flop around with no clear direction; strongest index is the NAZ followed by the IWM and then the SPX and the DJIA.

Best sectors are the airlines, brokers, semis, homies and trannies with oils, metals and drugs lagging.

The 10 year Bond is back under the 4.6% level at 4.586% and the lower rates are giving a boost to the homebuilders as both PHM and HOV are up over 3%. The brokers are catching a bid also on the heels of the recent sell off.

Market internals are slightly bullish at a NYSE reading of +600, no doubt impacted by the fixed income skew. NAZ internals probably a bit more telling at +225. AIG is the big DJIA winner with DIS the biggest loser.

It always seems difficult for the markets to put on much of a rally on Friday's and today seems to be no exception. Monday will be more telling as I expect buying today's weakness will seem smart next week. Oils and metals may also be a smart buy in front of next week as today's weakness will probably be bought as both sectors are now in decent uptrend and a "buy the dip" mentality may indeed reappear.