TECHNICALS- SPX

Markets trade generally lower on the heels of some disappointing news from PG LIZ ADM and CC. The LIZ miss was very surprising in light of the companies supposed top flight management team and outstanding long term record; and why no warning?

The RUT and the MIDS are acting especially poorly with both down over .5% while the DJIA is flat and the SPX/OEX are down about .2%.

Strongest sectors are an interesting group with drugs, big biotech, utilities and gaming leading while silvers, metals, brokers, airlines, reits, xchanges, homies and semis are all trailing.

Strong stocks include MA VLO AMGN and DNA while GOOG AAPL BIDU KLAC TSO CME NYX ICE BOT MS MER GS LEH LM BSC are all lower and some significantly red.

Market internals generally weak with a 15/35 green to red on the SPX; 4.5/5.5 green to red on the OEX and 2/3 up to down on the NDX.

The IBD 100 is more of an inidication of the overall market weakness with 25 up and 75 down. Leading higher on the IBD list are MTW ANST TNH PCLN SPTN and OYOG - leading lower are

ROCM DRQ BTJ SYNL BW EML HONG GROW and SIMO.

The NYSE internals are a bit better than 1/2 up to down while the NAZ is a bit worse.

Here we go with the buy signals- the 2 day RSI on the SPX /IWM/MDY are 9/5/5 respectively and the VIX /VXO combo are trading 12% and 11% above their respective 10 day SMA's.

So it is probably time to dip in and take some major indexes- my inclination is big caps will continue to out perform here so SPY DIA ES YM are on the buy list.