AFTERNOON TRADE

Markets continue to trade lower led down by the RUT and small cap value.

Strongest sectors include software, utilities, metals and biotech with homies, brokers, airlines and financials being the worst groups.

Market internals continue to be brutal with 2133 net losers on the NYSE and 1500 net losers on the NAZ.

OEX- 6 WINNERS- CI AEP S SO WMT HD- LOSERS- LEH ATI MS COF HIG EK F TXN AA;

NDX- 15 WINNERS- XMSR SIRI CELG MRVL RYAAY S ADBE JAVA XRAY SNDK;

LOSERS- MXIM NVDA BBBY GRMN JOYG EXPE RIMM NIHD AAPL INFY TLAB WFMI WYNN;

IBD 100- 6 WINNERS- ASEI SPEC CPLA GSOL MORN TRAK;

LOSERS- CMED ACH SNP PDA DK MA DRYS PCLN NILE CRNT DSX;

VIX up 8.5% and still under the 10 day SMA.

Financials continue to act horrible with LEH MS USB TROW CFC BEN AIB all down big.

XLF/IAI also down about 2% and maybe another entry point.

Major indexes may be nearing a buy area as 2 day RSI on most trade at/near 20 - a drift down to single digits may be an area to dip back in -