NOON LOOK

Markets continue to trade higher although off their highs and led by, yes, SMALL CAPS. The RUT is +1.35% while the SPX +.8% and the OEX is +.83%.

Strongest sectors include gaming, semis, utilities, real estate, reits, oils, biotech and defense; lagging is software and airlines.

Best performers- NVDA INTC EXPE BRCM MICC SLG BAM DEL AIB MA GS ICE CME NMX GOOG MRK SGP SYK BYD MGM ACH GME CPA CRDN ATHR TBSI and GTI.

Worst perfomers- HURN CLRK FCSX ATN CPLA EML CL LTD T CCU BA ADBE CDNS SEPR BLTYA ADSK GENZ and INTU.

Market internals remain very strong with 3,100 net winners between NYSE/NAZ while the NDX is 4/1 green and OEX 9/1 green.

Volatility indexes- VIX down 4% and VXO down 7.5%. VIX is 11% below 10 day SMA and the VXO about 13% below the 10 day SMA.

Markets are over bought and vol indexes are flashing sell signals as they rarely get stretched more than 10% below the 10 day; I am anticipating an afternoon ramp and will be looking to unload inventory.