CLOSING CHOP

The DJIA closed lower by 15, NAZ -10 and SPX -3 as the 1,400 number on the SPX is tagged (target 1, round number) as markets chopped higher most of the day before turning red during the final and most important hour of the day and is blamed on some "unfriendly" comments from the CEO of DHI. NAZ underperformed all day (no energy) along with tech, internets and semis.

The 10 year Bond drifted higher most of the day and now yields 4.497%. Rate cuts anyone and hello JNJ and other big cap recession resistant stocks.

Strongest sectors were oils, metals, trannies, homies, retail, midcaps, small cap value, utilities and drugs. Leading lower were gaming, real estate, tech, software and airlines.

Market internals were flat on the NYSE and red on the NAZ (-500).

Big cap index internals were red on the big three with 35/65 on the OEX/ NDX and 185/315 on the SPX.

Big cap winners included oil patch equities such as WMB COP SLB NSC CVX and HAL. Losers were WY EMC VZ ORCL MRK T RTN ROK and CPB.

IBD 100, a bit better with about 50 in the green led by DWSN EDU BTJ POT CNH HPC and HOC. Losers included ICE HRT CNVS CPA LFL and NTY.

Volatility indexes down about 5% and now at oversold levels as the VIX/VXO are about even with their respective 10 day SMA's.

VLO anyone (+17% in 2007), or TSO/HOC/XOM/FTO/COP, the refiners rip higher on the fear of inventory shortages, higher crude prices and the summer driving season?