CLOSING THOUGHTS

The markets hit their lows near the open and traded slightly above those levels for the rest of the boring day. The IWM and QQQQ have been the bright spots as they traded flat or a bit higher.

The best performing sectors were the internets, metals, brokers, drugs, consumers and cyclicals. Worst of the bunch- airlines, financials, retail and trannies.

EBAY LEH YHOO PAAS SSRI MER GS all solidly green while BBY INTC TGT WMT KLAC KSS and GE all red.

The action in the semis is interesting as INTC was downgraded but the SOX and the SMH are only slightly red. Maybe the smell of a bottom in the sector and with the positive action in the brokers, just maybe a rally is close.

The DJIA 30 finds 12 closed higher and 18 lower with only WMT and INTC moving more than 1%.

Market internals started out ultra ugly (-2,000) and did not flip to green but improved to -900 near the close.

Volatility indexes continue to hover a bit north of the 11 level and about 5% above their 10 day SMA's, so maybe another tell of temporary bottom.

The 2 day RSI on the SPX continues to hover near the 5 level and the 21 day SMA has so far been a back stop. Maybe tomorrow.