BUY SIGNALS

Buy signals at last as underinvested bulls can buy the markets if they so desire. We have the 2 day RSI on the SPX under 10 and the VIX trading at over 110% of its 10 day SMA.

Of course now that the market has made a U TURN folks may not want to buy so quickly.

The SPX has also traded through its 8 day SMA and is close to its 21 day SMA of 1,387.

Market internals are as ugly as they usually get with about 3,200 more losers than winners.

The explanation for the sell off has centered on the crushing of the dollar which hit a 20 month low against the EURO.

If you are itching to buy remember that markets that are weak all day tend to close at/near their lows. Also, the DJIA SPX and NAZ usually don't go down more than 150, 15 and 40 point in one day respectively.

Strongest sectors remain the metals, oils and the gaming stocks with the brokers, airlines, techs and internets taking the brunt of the downturn.