UGLY NOON

Markets have flipped lower on the heels of the Bush news conference, well maybe not, but the action is quite different than what we have seen of late as volatility and lower prices have returned.

Market internals have flipped ugly also and the NYSE now shows 750 gainers and 2,315 losers while the NAZ is at 700 green and 2,150 red.

The 2 day RSI on the SPX has also reached buy territory with a reading of 11 and the VIX now trades about 3% above the 10 day SMA.

One troubling sector, the semis, which started breaking down about 10 days ago and now trades about 5% off their highs. Not sure if its time to buy them but the sidelines may be a good place for now.

And if anyone is interested I just finished Curtis Faith's new book, Way of the Turtle, which is terrific. The turtle trading system is explained in great detail as well as their money management and position sizing methods.