NOON SWOON

Markets are getting thumped here as news hit that Congress intends to tax "carried interest" at ordinary rates. Not sure why it wasn't ordinary income as it is a payment for services rendered.

Anyhow, covering some shorts here as the DJIA is -150, SPX -18 and NAZ -29.

The aforementioned 50 day SMA on the SPX has been tagged and would anyone be surprised by some new acquisitions/mergers on Monday causing a rally?

In addition to the tag of the 50 day SMA, the volatility indexes are also giving buy signals as the VIX/VXO combo are now at the 110% of the 10 day SMA level.

The 2 day RSI levels not quite at the over sold level of 10 but close at or near 20 on the major indexes. So another toe in is probably the way to go for now.