THE CLOSE

Markets closed lower but well off their worst levels as the sub prime mess continues to weaken stock prices. The RUT/MIDS were again the worst of the major indexes as folks look to capital preservation with the under owned big caps.

Strong sectors included utilities, trannies and internets while reits, silvers, metals, homies and brokers were the worst performers.

Winners included CMCO BTJ FLIR AFSI GRMN GOOG FDX CVX and ABT.

Losers included SYNL EML CYNO FCSX IDSA ICE LAYN GS BSC MA BOT CME and NMX.

Market internals close ugly with about 1,000 net red on both the NYSE and NAZ while the NDX/OEX closed with 3 up to every 7 down.

The rate on the 10 year has silently dropped down to 5.078% and maybe before long that will the story that gets stocks higher.

How close to the bottom are we? Eh, not sure but about 25% of the OEX/NDX components now trade with 2 day RSI levels under 10 while the actual indexes trade near the 15 levels.

Futures are moving up as I type so maybe yet again another over sold bounce manyana.