AFTERNOON BOUNCE

Markets are making an attempt at an afternoon comeback after what has been a fairly interesting 3 hours of trading. The big caps are underperforming even on this down day.

The "tech heavy" NAZ trades well at about break even and the SMH trades down 8 cents.

Strong sectors include the metals, biotech, silvers, utilities, tech, internets, small cap growth, retail and integrated oils.

Weak stuff includes big caps, homies, banks, brokers, large cap value, airlines and trannies.

The bonds may be influencing the trade this afternoon as the rate on the 10 year has flipped down to 4.722%.

Market internals continue red with negative 375 on the NYSE and negative 150 on the NAZ.

The SPX has 230 winners while the NDX is even between winners and losers; the big cap OEX has 35 up to 65 down.

GS GOOG AAPL ICE NYX all nicely in the green after starting out ugly while MER MS CME BOT have all come back to only slightly in the red.

Volatility indexes have already come back down from the morning highs and the VXO is now only a hair above the 10 level.

And interesting stuff on CNBC this morning as more folks are looking for a correction now that the market is down a bit. My guess, this dip is for buying and next week we will again be knocking on the DJIA 12,700 door forgetting all the new highs we will see on the MID and the RUT. Tech also looks good as the semis refuse to go lower of late.