THE CLOSE

Markets closed higher again with the NDZ/NAZ group leading the way higher.

Strongest sectors included airlines, trannies, brokers, oils, tech and financials while homies, retail, metals and reits lagged.

Market internals were bullish on NYSE with 820 net gainers while the OEX showed almost 3 up to every 1 down and the NDX showed about even between winners and losers.

The VIX dipped down under 15 and now trades about 5% below its 10 day SMA while the VXO is more stretched and about 11% below its 10 day SMA.

Most of the major indexes are very overbought with 2 day RSI readings at/near 95; and about 32% of the OEX components trade at/over 90 readings ( 15% of the NDX components and 40% on the IBD 100). Also, note there aren't many components trading with readings under 10 (5 between IBD OEX and NDX).

Be careful and trail the stops.