NERVOUS?

Markets open lower with some heavy selling yielding some pretty higher Volatility index readings. The VIX/VXO/VXD combo giving the highest readings since late last summer/early fall and are now stretched more than 20% above their respective 10 day SMA's.

Strongest sectors include drugs, utilities, large cap value, oils, semis and banks (all lower but relative outperformance); weakest are emerging markets, gaming, metals, brokers and small cap value.

Market internals kind of weak with 4,400 more losers than gainers on the NYSE and NAZ.

The OEX has 3 stocks in the green, GE CL and ABT while the NDX has 6 in the green, MRVL ERTS CHRW XLNX LLTC and NVDA. The SPX has 20 green and 480 down with RSH STR ERTS RDC PPL SE acting best.

The worst of the key stocks are ICE NYX BIDU MS GS LM and MER while the best of the bunch is MA CME and SMH.

I dipped in again and bought some IAI, and am trying to buy some ITA and will cover any remaining shorts before the day ends.

One can listen to pundit after pundit but I like to follow the signals and the 2 RSI on the SPX/DJIA/IWM is now 1, 1 and 4 respectively. My guess is buying yesterday and today will eventually pay off nicely.