AFTERNOON TRADE

Markets trade lower although off the bottom as the large caps continue to beat the small caps.

Strong sectors include oil service, tech, biotech, brokers and drugs while tranies, retail, airlines, defense, metals and banks lag.

NYSE internals FLAT- NAZ internals red 575;

OEX: 45 UP 55 DOWN;

WINNERS- LTD CSC AMGN HPQ MDT HAL BHI MCD BAX IBM;

LOSERS- NSC ATI HD EMC GM TGT AA SLE BNI F ROK BA PEP;

NDX: 40 UP 60 DOWN;

WINNERS- JOYG DISH MRVL ATVI SEPR EXPE TLAB CMCSA ERTS ERIC;

LOSERS- FAST DISCA INTU MICC SNDK AKAM FLEX XLNX LRCX ISRG NIHD;

IBD 100- 45 UP 55 DOWN;

WINNERS -GME WNR NILE FSTR DK KCI DRC ESI PCLN NOV;

LOSERS- ARGN LKQX DRYS MR BTJ SF CEDC ZUMZ CPLA TBSI;

Volatility near the unchanged line but still way over sold at/near 20% below the 10 day SMA.

Markets look like they want to rally again as the 200 day SMA on the SPX was again hit on this pullback. Just feels like folks want to get back into equities as BAC is giving folks confidence.

And for the record, I am in favor of a rate cut and agree with Bill Gross, bailouts not so bad if it keeps the economy/country out of trouble. Yeah, dumb loans made to unqualified borrowers, but if bailing some of them out keeps lots of folks employed - well so be it.