PM LOOK

Markets continue to trade way lower with buy signals galore; just remember the other trading rule that says markets that are weak all day tend to close at/near their lows.

The much discussed rate on the 10 year is now at 4.974% and down a hair on the day.

Strongest sectors include brokers, reits, defense and semis while silvers, trannies, homies, metals, oils, airlines and utilities act worst.

Key stocks that are higher include BOT CME ICE SNDK AAPL XLNX NVDA DELL SLB MDT COST and WMT.

Market internals are very weak with a net of 3,700 losers between the NYSE and NAZ.

The NDX has 10 issues in the green while the OEX has about 6 green. IBD 100 also with 9/1 losers to winners with GES ICE NILE CLRK ESI AAPL APLX X SRSL and PCR in the green. IBD biggest losers include HWCC TLVT TSO BW DRYS WNR CENTX and IDSA.

The VIX is higher by 10% and trades about 11% above the 10 day SMA and the VXO is up 14% and trades almost 15% above the 10 day.

These numbers are now quite stretched and chances are pretty good for a bounce. Not saying today necessarily but soon.

The 2 day RSI's, YM/DIA 4, ES/SPY 7, OEX 8, RUT 12, MID 14;

Other stocks with low readings include C 1, JPM 2, GS 4, LM/MER 4, TWX 1, PPH 2, MRK 0, YHOO 3, DNA 4, IBM 2, HIG 1, SIAL 2, BBBY 1;

Highe readings- NVDA 99, GES 100, APLX 100, PCR 98.

So for all those who wanted to buy the dip- well its dipping.