AFTERNOON CHECK

Markets are trying to make a comeback after taking it on the chin this AM on the heels of bullish crude inventories and some talk of inflation rearing its ugly head.

Strongest sectors include airlines, oils, metals and drugs while homies, banks, real estate, defense and biotechs bring up the rear.

Market internals have also improved from the earlier bearish levels and now show about red net 1,300 on the NYSE/NAZ while the NDX/OEX/SPX trio shows about 7 issues down for every 3 up.

Key stocks also looking better with GOOG JPM BSC CME and BOT green while AAPL GS LM MER MS NYX ICE and MO are all red.

Vol indexes turning tail and heading down again after being up 8 or 9% this earlier this morning.

I still suspect this market is going to go higher on the heels of better than expected earnings and guidance as most companies continue to have low expectations.