THE REVERSAL OF THE REVERSAL

Markets opened higher on the great jobs news (not to hot not to cold) but have since flipped to flat on who knows why. The DJIA is about 30 points off its high at +22, NAZ+4 and SPX+2.5.

Market internals have flipped from yesterday by starting out at a bullish +2,000 and now showing a +1,300. Yesterday, they rapidly flipped from -2,000 to -1,000, so something beneath the surface may be brewing as volatility is accelerating.

Strongest sectors include oils, oil service, small caps, semis, tech and metals. To the downside, software, internets and drugs.

Also note many TICKS below the zero line, so for now it looks like traders are in the "sell the rally" mode.

One question is why is the NDX so weak? How much is WFMI (-20%) impacting the overall index?

Jay at globaltechstocks.com is pounding the table on CTSH on the downgrade. He of course has been pounding the table for years on the stock and has made lots of folks lots of money on it.