MORNING LOOK

Markets open lower on the heels of rising rates (again) and actual fear as the VXO is up another 6% giving a buy signal as it trades above 110% of its 10 day SMA. The VIX hasn't hit the buy area yet but if one wants to get long/longer this may be a good place to dip in a toe.

Strongest sectors are semis (green by 1% in the face of ugly stuff), silver, oils, tech, software and emerging markets. Leading lower are biotech on the crummy news from AMGN, gaming, trannies, internets, homies, airlines, brokers and retail. Large cap growth/value also acting better than the small caps.


Market internals are ugly again with only 35 winners on the NDX; 170 winners on the SPX and
about 40 out of 100 winners on the OEX.

The DJIA has about 10 winners and 20 losers with CAT MSFT AA INTC and XOM acting best and T HON BA DD MCD and PFE acting worst.

Overall, about 500 net losers on the NYSE and 400 net red on the NAZ.

Finally, there have already been a number of high tick readings including one over 1,000, so maybe it is a buying opportunity yet.