STRONG SMALL CAPS

Markets closed near where they started again except for the "tech heavy" NAZ which ended up 19 on the heels of good numbers from CSCO.

The DJIA got to a high of 12,700 and sold off down to the 12,630 area before rebounding and closing back at yesterday's close. A range of about 70, so not quite up to the usual 90 point spread but closer than the last few days.

As mentioned on more than few occasions, I expect more new highs on the DJIA and check the action in the RUT/IWM. Yes, up about 3/4% while the Big caps act punk, but don't forget "that is where the value resides." Another down day for GE PFE XOM BA MSFT JNJ IBM PG KO MO and WMT. Not sure if I want value or higher prices on my stocks/indexes.

Strongest sectors included semis, internets, tech, reits, small caps, small cap value, brokers, defense, and biotech. Underperforming were oils, metals, drugs, airlines, homies, emerging markets and large cap value.

Volatility indexes closed lower with the VXO reading at an oversold (bearish) 9.72 and the VIX a not so terrible 10.32.

On another interesting note, the NDX closed with about 80 winners to 20 losers; the SPX with 300 up to 200 down and the OEX with 50/50 between winners and losers.

All in all, a good day for tech and the small caps and a flat day for the big caps which continue to act poorly in relation to all the other major indexes.