CLOSING MARKETS

The DJIA closed near the high (almost 1%) but the NAZ lagged after being up about .5% earlier and closed with a gain of 9 or about .3%.

Strongest sectors included metals, reits, gaming, oils, homies, emerging markets, trannies, internets, retail, large cap value and financials. Weakest were semis, biotech and drugs.

Market internals, not including the NAZ, were very strong all day with net of 1,400 winners on the NYSE and a green rate of 85/15 on the OEX. The SPX closed well with 400 up and 100 down. The NDX was much better than the NAZ with about 7o winners while the NAZ had a net of 550 winners.

The DJIA internals were great all day closing with 28 up and 2 down with the losers being IBM and JNJ. AA MMM GM DIS HPQ VZ XOM were the big winners in the big cap group.

Key stocks acted very well with GS MA ICE NYX BOT CME MER and MS all closing strong. AAPL KLAC and GOOG lagged. Tech and the NAZ were clearly laggards all day and I suspect a little rotation back into that sector before long.

The volatility indexes sold off, and the big 3, VIX VXO VXD, all closed down 10% or more and are now under their 10 day SMA's. The sell signal comes when they are stretched 10% below their 10 day SMA.

And speaking of Kramer, Adam has done a little homework on how his pinning. Its worked about as well as his call from yesterday afternoon when he said "NOT DONE WITH THE DOWNSIDE":

"What makes this market worrisome short-term? You have a couple of positives that are completely being overlooked. That shouldn't happen in a good tape, especially because we were weak at the tail end of last week.

First, we had more than our usual number of takeovers this weekend. There were some important bids, including the aluminum and oil service bids. These are very important takeovers -- but they had no impact whatsoever.

Second, you have oil down nicely. I was very concerned, if we blew back through $60, that the gasoline I paid $2.05 for this weekend would go higher. And that would have ruined my retail thesis.

That the market did not react well to these pieces of news means we aren't done yet with the downside. And the expiration will exacerbate the decline."

To cap it off, the DJIA is only 45 points away from the record of 12,700. I suspect it won't be long before that gets taken out again. And of course we get Big Ben tomorrow and the oil patch report.