TECHNICALS- MAJOR MARKET INDEXES

Major market indexes have put on a rather significant rally over the past two days after pulling back all last week.

The DJIA SPX and IWM all have 2 day RSI readings over 90 and the VIX and VXO have drifted back down below 11. So it maybe a good time to take some inventory off the table as better buying opportunities will probably appear later in the week on the what has become typical Friday selloff. I intend to take some of my ETF's off the table into the anticipated high TICK readings this afternoon and will trail stops on another tranche. This current level on the DJIA and the SPX was prior resistance so lets see what happens this afternoon.

Market internals still bullish but have fallen from earlier highs. Current readings are +1,130 on NYSE and +1,100 on the NAZ.

The brokers and GS especially is not doing as well as I would like and may be giving the beginning signal of a selloff. On the other hand, the SEMIS, are doing quite well and the SMH is higher by over 2%.

Airlines, biotechs, internets, tech, trannies and drugs all doing well while the oils, GS LEH and BSC are all lagging and red.

On the election front, tradesports.com has elevated the chances for Webb in Virginia to near 70% and is also showing greater odds for democratic victories in NJ, Montana and MO.

Those exit polls mentioned earlier and yesterday may not be available to the public today as many are talking of a "clamp down" so the results don't get early. We will see.