NOON SWOON

Markets continue lower as all the morning blips higher have been faded. The DJIA is -108, NAZ -20 and SPX -12. The RUT/MID's are lower by about 1% and under performing the big caps.

Strongest sectors inlcude gaming, airlines and tech while semis, homies, real estate, utilities and retail lag.

Winners include LEH CME NMX PG GOOG BIDU AAPL MGM INFY and BHP.

Market internals are very weak with a net 1,760 losers on the NYSE and about 1,200 net losers on the NAZ.

The NDX has about 3 losers to every gainer while the OEX shows 15 up and 85 down.

Big cap winners inlcude BUD EK DOW AMGN CSC AMZN ATVI GOYG PCAR UAUA while losers include BBBY FLEX MICC BEAS XRAY DISH NSM DD HD LTD TXN NSC BNI and MO.

Rates continue to inch up and the 10 year is at 4.972% and higher by about 4.5bps today. It bears watching but I don't think rates will explode higher.

The 2 day RSI on most of the major market indexes stand in the 20 area and are approaching a spot where a dip may be appropriate. VIX/VXO higher by about 5.5% and trading about 5% above their respective 10 day SMA's which also suggests a point to dip the toe.

Stocks that may be worth a look here include MO BAM (recent 3/2 split) COST C and SGP.