THE OPEN

Markets have opened higher with the DJIA +78, NAZ +14 and SPX +8.4.

Strongest sectors include oils, metals, real estate, utils, small cap growth, gaming and defense while brokers, trannies and drugs lag.

Some warning signs are appearing as the action in the brokerage group is a bit disconcerting with BSC GS LEH LM MER MS all trading red. The banks aren't acting so hot either with AIB BAC JPM and MTB red.

Market internals are great on the NYSE with a net 1,500 to the green while the NAZ is good with 750 net green. The NDX is about 55 up to 45 down while the OEX is much better at about 4/1 ups to downs.

Volatility indexes sinking about 4% and now trading about 3% below the 10 day SMA's.

The 2 day RSI's on the major indexes also getting over bought with readings generally at the 85-90 levels.

Probably some chop from these levels as its Friday and generally a choppy day with a positive bias.