POM POMS

Markets continue to trade higher although a bit off their highs as the RUT and the NDX continue to lead.

Market internals, generally the best signal for market direction continue to be very bullish with an overall green 1,700 on the NYSE and green 1,200 on the NAZ.

The NDX 100 continues to excel with 80 winners and 20 losers while the DJIA had all green except for BA while the SPX 500 has about 435 green and 65 red. The internals on those indexes don't get much better than that.

Strongest stuff includes DNA SSRI SBUX BBH PAAS GS internets, airlines, semis, brokers, homies, metals, software and oils while AAPL BAC and LVS trade a bit lower.

Volatility indexes bear watching as they are now dipping back down to the mid 10 level. Any drop below 10 probably signifies a near term end of the rally.

I am playing the DJIA Futures as usual and am expecting the recent highs at 12,580 on the cash index to be taken out. That is about 50 YM points from the noon quote.