THE CLOSE

Markets closed at/near the lows as sub prime slime and crummy retail sales bothered the markets.

The brokers/financials were the primary area of attack as BSC BX GS LEH LM MER MS BOT CME ICE NMX BAC C CFC JPM MA MTB WB WFC were all lots lower.

Consumers, defense, drugs, gaming, insurance, real estate and retail also closed ugly while oils and metals escaped much of the damage.

If you wish to buy weakness, today was the day and probably tomorrow too as the weakness will probably last into the morning trade.

The VIX/VXO tandem up close to 20% and now trading over the 10% above the 10 day SMA level and in a general buy area for the major indexes.

The 2 day RSI levels on the major indexes:

SPX 12 and under the 50 day SMA;

OEX 13 above the 50 day SMA;

DJIA 20

MID 15

RUT 10 and still above the 50 day SMA;

NDX 25 well above the 50 day SMA;

COMPX 20 well above the 50 day SMA;

Rates have fallen to the 5.03% level on the 10 year and may be back on the radar quickly as a reason to buy equities;

So not bad as the fear ramps up on CNBC as the sub prime slime dominates the talk on bubble vision.

My take, buy the NDX as tech has been strong and will probably be the place when the crowd decides to buy higher.