AFTERNOON JIG

Markets have rallied back to the flat line and I think what happens this afternoon is important as many traders/investors may see an "all clear sign" as volatility eases.

Strongest sectors are oils, gaming, brokers, software, utilities, homies, tech and reits while silver, biotech, metals, European equities, drugs and retail lags.

Market internals have flipped to near flat as the NYSE shows -150 and the NAZ a -580 after being much worse in the morning.

The NDX is 50/50 up to down; OEX almost 60/40 and the SPX also about 50/50 between green and red.

Key stocks - GS flat, GOOG AAPL BOT CME MER MS RIMM BIDU HHH all green KLAC INTC and Don Hayes' semis, red.

Volatility indexes are now only up about 1% after hitting pretty extreme levels in the early trade although still way above the 110% of their 10 day SMA levels.

I am staying with my "they close green" call from earlier today.