MORNING CHECK

Markets started the morning higher but have since flipped to flat even on the heels of dramatic strength in the semi space due to numbers and commentary from ADI etc.

Generally I would scream to sell the semis as they rarely go up two days straight, but today just might be different.

Crude inventories come in with a stronger build than expected but is trading higher as are the stocks.

The first hour range is wider than we have seen in a while and just maybe some volatility is heading back to the major indexes.

Strongest sectors include the aforementioned semis, metals, internets, gaming, oil service, trannies, utilities and brokers; leading lower are biotechs, homies, reits, retail, drugs, finanicals and airlines.

Market internals started out strong but have since slipped to flat on both the NAZ and NYSE.

The SPX/OEX/NDX internals are all near flat or slightly below.

For now the bulls get the benefit of the doubt as anything else has been a losing strategy.

Don't know if the tech space will pull the rest of the markets up today or vice versa but it looks like it is shaping up as an interesting day on the street.