PRE CLOSE LOOK

Hey now - We finally got the rally no one expected as the markets were way over sold and everyone was predicting the 10% decline since we were already down near 5%. Funny how that didn't work.

The 2 day RSI's on the major indexes now at/near 60 with the RUT/NDX acting best and trading near 75; and don't tell anyone but the NDX is only about 20 points from the recent high and the SPX is about 35 off and attacking the 50 day SMA which is about 5 points above this level.

The volatility indexes are down about 15% but still trade about 10% above their 10 day SMA's so I suspect this rally still has legs and an attack of the old highs on the SPX/DJIA before long would not surprise me. What again are/were the sub prime issues?

Big winners included real estate, semis, biotech, oils, homies, small caps, utilities and tech.

Stock winners inlcuded BAM SLG BSC GS MER MS CME ICE SNDK AMAT TXN INTC CLB GSOL CMCO WRNC DWSN GRMN HURN VRTX BAX LTD and LEH.

Losers included S DOW CAT AIG GOOG YHOO CPA PCU CF TEX WBD TSO MTW and EWA.

Despite the gains I am not selling as I expect we get back to the old highs before too long and much lower levels on the VIX/VXO combo.