HOUSING CRISIS

The markets did not greet the existing home sales news well and have since sold off as the NAZ is down 12, SPX -6 and the DJIA -7 helped by IBM, which is up almost 4 or responsible for 30 positive DJIA points.

Strongest sectors include semis and tech with most other sectors in the red; leading lower are airlines, brokers, homies, real estate, retail, trannies and silver stocks.

Key stocks are generally red with MA GS MER BSC CME acting worst with SGP SYK CNI and BIDU green.

Market internals are pretty ugly with 1,000 net red issues on both the NYSE and the NAZ.

The SPX/OEX/NDX all with about 3 down issues for every 1 up.

Big winners include PCAR ESRX ALTR CDWC XLNX DISCA SNDK NVDA IBM HON TXN LTD COF DD and S.

Biggest losers include GS TGT BNI LEH ATI CSCO T MER WB JNPR TLAB SEPR MICC UAUA CHRW and VRTX.

The IBD 100 paints a similar picture with 4 down to each 1 up with strong performances from AXE JST HDNG CNH HRT SYNL DXPE SNHY UUU MFW and CLB.

I suspect a ramp later in the day in spite of the crummy financials/internals. Just seems like most folks like to buy dips and its dipping. Oh and did I mention the Volatility indexes are getting close to buys signals as they trade about 8% above their respective 10 day SMA's.