MARKETS OVERBOUGHT

Markets are set to open lower on the heels of some problems with the YHOO / IBM earnings/guidance. INTC was better than expected and the shares are trading up 30 cents in pre market trading.

Bottom line- markets are overbought as the DJIA is back to all time highs while the SPX took out its recent Feb highs on the heels of strong performance in the energy sector over the past few weeks.

The 2 day RSI on the major market indexes is back to the mid 90 levels while the VIX/VXO combo are at the 11.5/12 levels oversold and near the sell levels.

I sold the balance of my YM DJIA futures and IWM ETF's yesterday and don't expect to buy back for a long swing trade until some time next week as I expect the markets to trade lower or tread water until then.

I will be out running errands most of the day but hopefully back before the close.