LOWER CLOSE

Those ugly market internals kept me out of the early afternoon bear trap as the markets flipped to green but quickly fell back as rates went back to the 5.25% area.

Just about all sectors closed in the red with the best of the bad being biotechs, brokers, tech, defense, semis, large cap growth and retail. Worst sectors were silvers, airlines, real estate, utilities, homies, trannies, samll caps and oil service.

Green stocks included GS LEH ICE NMX MA INTC AMGN IBN ADSK WNR CF DRC PCR and MTW.

Red all over the board with the worst being BTJ FCSX DXPE CPA DRYS TWIN CELG ERIC SEPR UAUA AES ATI T and LTD.

Market internals closed near where they began with about 4,000 net red stocks between the NAZ and the NYSE.

The OEX/NDX combined for about 40 out of 200 green between the 2 indexes reversing the earlier reversal (lol).

Volatility indexes up a cool 10% and trading about 15% above the 10 day SMA.

The 2 day RSI's back near the 20 level on the major indexes and maybe a down open will get us back to oversold levels and near buy levels.

The 50 day SMA is back on the radar as it sits at 1,493 on the SPX and 13,158 on the DJIA.

Bonds are way oversold and I expect a reversal shortly as the 2 day RSI on the TLT is under 1. It also appears to be all any one talks about and generally when that happens it reverses and becomes less relevant.