CLOSING BELLS

Markets closed in the red but off the highs and above the lows. The midcaps were the best major index, just a hair below the all time high. SPX/OEX/DJIA all lower by about .3%.

Best sectors were metals, semis, utilities, internets and retail. Leading lower were big caps, brokers, reits, homies, banks, software and gaming.

Biggest gainers included LOW KLAC EXC TXU R CMVT HRB CHK JOYG CTXS CELG INTU ATI and HAL.

Biggest losers - LEH MER MS COF ORCL WB WFC MSFT BEAS PDCO WFMI and INFY as the Indian equities took it on the chin the whole week.

Market internals improved most of the day after hitting their lows in the morning trade. The NYSE had about 150 more losers than winners while the NAZ had about 400 net red. I suspect some fixed income equities skewed the NYSE number as the long bond rate traded down to 4.68% or 5 bps.

The NDX had a 40/60 winner loser ratio while the OEX had 30/70 and the SPX 200/300.

Volatility indexes, hardly overbought as most trade at/near their 10 day SMA.

The 2 day RSI's all over the board with DJIA at 7, SPX 13, QQQQ 72, MID 99, RUT 59, IAI 7 and MER 1.

quietly, VLO, a past and current favorite has moved up over the past week and is now + 15% on the year while ETF's XLE and OIH are flat.

Brokers were among the worst of the groups as "subprime issues" are getting mentioned in the space.

Sold some longs today and this week including SMH /IWM /DJIA Futures but I remain long the NAZ Futures among other assorted equities and the Do Not Short button is still firmly in place on the trading turret.

I am curious to see what trading will bring us Monday as I suspect a bounce and end of the month/beginning of the month money comes into play and Iran/Cheney etc. move to the back burner.