THE CLOSE

Markets gyrated all day swooning at mid day and rallying in the afternoon and closing flat on the SPX. The DJIA finished up 40 after being down 100 early and up 100 late. The best performing major market index was the Midcaps and small cap growth.

Strongest sectors included metals, gaming, trannies, reits, semis and defense while banks, brokers, internets and software lagged.

Volatility index down 12% and now trading under the 10 day SMA.

Market internals- NYSE 665 net GREEN / NAZ FLAT;

OEX: 55 WINNERS 45 LOSERS;

WINNERS- AA TYC HON SLB BNI CI F CCU ATI EMC;

LOSERS- TGT COF CMCSA HIG LEH XRX ALL EK HNZ CPB IBM BAX;

NDX: 50 UP 50 DOWN;

WINNERS- RIMM GRMN SEPR ADSK MICC MRVL LOGI DISCA NIHD AKAM;

LOSERS- DISH PTEN INTU XMSR WFMI CTSH BRCM FLEX NTAP LINTA;

IBD 100: 70 UP 30 DOWN'

WINNERS- BTJ RIMM BCSI BIDU GRMN WCG TBSI VDSI NILE WFR;

LOSERS- DK TTEC DRC HMSY GMCR FLIR WNR ROS RADS CPLA PCP;

Financials were ugly all morning but started getting a bid in the afternoon while the IBD 100 was pretty strong all day. I suspect if the news stays "benign" the markets will continue to rally. Guy Adami out with some interesting stuff saying he thinks GS will blow earnings numbers away and buying here in the $170 area will the big bargain.

Value Lines latest stats have the DJIA trading with a p/e under 15 for the first time in a while. They are probably correct and the DJIA is probably a great long term bargain for anyone with a long term outlook or grandchildren they want to support.

And I doubt Mike Vick is coming back to the NFL- does anyone actually want to see him play football after his actions. I think not. Done.