OPENING DAY

Markets are trading higher although off their best levels. DJIA +70 NAZ+22 and SPX +6. Looks like volatility will be the word of the day and I will probably stay on the sidelines.

ISM comes in a bit stronger than expected.

Strongest sectors are gaming, trannies, airlines, retail, drugs and software. The big loser, the oils as crude trades down to the $60 level and may be a buy here although the weather map shows no sign of colder weather.

GOOG GS AAPL MS all higher but off their highs.

Market internals show about 1k more winners than losers on both the NAZ and the NYSE.

NDX and OEX both show about 80 winners and 20 losers while the SPX is about 375 to 125 winners to losers.

The Russell started the morning as the strongest major market index but has since given up some of the margin and I expect it will be all over the board today.

Keep an eye on the DJIA 12,555 level as the markets have already been turned back from that second level of daily resistance.