MORNING MARKETS

After some slight hesitation near the open and a gap fill, markets have turned higher on the heels of the CSCO guidance. Oil inventory numbers out and it looks like not much of a reaction to a higher gasoline build and an unexpected draw down in crude.

The DJIA +20 (new all time high), SPX +3 (new post bubble March 2000 high) and NAZ +12.

Strongest sectors include tech, semis, reits, internets, metals, oils, defense, biotech and small cap value. Leading lower are airlines, drugs, utilities, homies and emerging markets.

The internals on the NDX are very strong with 85 out of 100 components in the green. The SPX has about 320 higher and the OEX with about 65 in the green.

Market internals on the NYSE are +650 and +470 on the NAZ.

Key stocks are mixed with GS AAPL MER MS IAI KLAC AMAT HHH all green while GOOG ICE NYX BOT CME are all in the red.

Biggest winners include CSCO MGM CSC CAT HPQ S NSC BRCM APOL XRAY TLAB and INFY while MEDI ADSK RIMM BEAS BBBY GOOG SLE TYC AVP and TXN are some of the biggest losers.

Volatility indexes still above 10 so I am still looking for higher prices. Resistance on the YM DJIA Futures at 12,722/12,746. We are also right at the 1,450 mark on the SPX, so if they bust through there could be further to go as stops likely sitting at these levels.