THE CLOSE

Markets closed at/near the highs but some issues do exist as the markets seem to have gone straight up since the bounce off the lows last Thursday.

Strong sectors included airlines, gaming, homies, metals, trannies and oil service while financials, semis and biotech lagged.

Market internals +2025 on the NYSE and +1125 on the NAZ.

WINNERS - NTAP PCAR ESRX NIHD TGT AA AES CPB HIG IP BCSI DRYS TBSI MR EDU;

LOSERS- TRAK GRMN ARD ESI OII MORN COF WFC F KO JPM AEP ABT MDT SO XMSR PDCO AMAT MCHP VRTX;

The markets still have issues, first, the banks and brokers lagged today with JPM MTB WFC BSC CME all closing red despite the 145 point gain on the DJIA. Next, the 2 day RSI on many of the major market indexes have climbed back to the 85/95 level and the VIX is close to 20% below the 10 day SMA. Bottom line, I suspect a pullback to the 200 day SMA on the SPX which is near the 1456 level; buyers should be happy to get back in there if the markets allow.