THE CLOSE

Markets closed higher but off their best levels of the day as merger activity cheered on buyers. The DJIA closed +93, NAZ +3 and SPX +7 while the MID's closed red along with small caps.

Strongest sectors included oil service, drugs, utilities, defense and large caps while real estate, reits, homies, airlines, biotech and retail lagged.

Big winners included ISRG TLAB WYNN PCAR CSCO MRK CSCO HAL PEP T CL NVT TBSI EDU ACH CMED DRYS and OIH.

Big losers- PVG FCSX BIDU SNDA SNHY PCLN ARD ICE SIMO EXPE SHLD MRVL GILD WB EP AA CAT GOOG AES TGT and HD.

Market internals were slightly red on the NYSE and NAZ while the OEX was strong at 3/1 green / red and the NDX closed with an equal number of winners and losers. IBD 100 also strong at better than 3/2 up to down.

Volatility indexes a bit red as the VIX trades about 5% above its 10 day SMA.

Other stuff worth noting:

Small and mids starting to under perform while the NDX also seems to be losing its jig as GOOG is lower yet again;

CAT and DE down again;

Banks/Brokers/Xchanges mainly lower with the exception of C MA BEN BX LEH NYX TROW;

Biotech crummy again led lower by GILD CELG;

Consumers Non durable strong led by CL KMB PEP PG SBUX;

Media a mixed bag as folks wait for the DJ verdict- market seems to be saying not a done deal as it sinks lower yet again;

Metals- generally lower with BHP the exception;

Real estate ugh lower again;

Retail lousy with the exception of CROX CVS DECK GES PVH WFMI;

Tech lousy led lower by GOOG HHH AKAM BRCM HPQ KLAC MOT RIMM YHOO;