CLOSING MARKETS

Markets closed near where they started as the DJIA closed +4, NAZ +6 and SPX -1.5.

Strongest sectors were airlines, trannies, small caps, retail, small cap value, midcaps, internets, homies, biotech and tech while biggest losers were metals, brokers, emerging markets, gaming, oils and banks.

Key stocks were primarily lower with GS down $2.21, GOOG down $3.37, ICE -$5.37, CME -$13.36, MER -$2 and MS down a buck.

The rate on the 10 year Bond climbed up to 4.892% and is putting some fear into some of the bulls as the recent selloff/standoff in the markets began as the rates started to climb.

Market internals started the morning nicely green with NYSE showing a bullish +1000, but flipped to flat in the early afternoon trade and closed with about 340 more winners than losers. The NAZ was a bit better with 550 more green than red.

The NDX closed with about 62 stocks in the green while the OEX had about 45 winners. The SPX 500 was about evenly split between winners and losers.

Volatility indexes climbed higher with the VXO/VIX combo now trading about 6% /7 % higher than their 10 day SMA's. So not quite to buy territory but may be a place to start to dip.

Also wondering why the small caps were so strong today; generally one of the first indexes that shorts go for is the RUT/IWM. Just wondering.

Speaking of a place to dip, how about the 50 day SMA on the SPX. Yes, about 6 points lower, so maybe that gets touched as the 110% of the 10 day SMA on VIX/VXO gets hit. Just may get the combo buy signals later in the week.