NOON TOUGHNESS

George W. Bush making big news today as he appears to refuse to "alter" his policy on Iraq and the reaction in the markets is not to go higher but just sit at the morning lows.

The tech sector is underperforming again and AAPL has broken down under the $89 level despite an upgrade from Caris with a $100 price target. Some where I saw the reason for the weakness being a delay in the IPHONE.

Strongest sector include banks, big caps, consumers and DNA MER WYNN WMT and MGM on my watchlists. The weakest include oils, semis, software, small caps, homies and metals.

The DJIA being in the red, has 20 issues higher and 10 lower led by MCD CAT MO GE and KO on the plus side and MRK HD XOM BA and GM leading lower. GOOG and GS look to be heading higher so maybe a small hint of an afternoon rally.

Market internals have flipped, although hardly pointing to a crushing and now show -220 on NYSE and -400 on NAZ.

Note the 2 day RSI on the NDX/QQQQ is under 30 and it hasn't been there in a while so if you are a believer in the year end rally it may be time to dip in the toe.