FLYS

More flys this afternoon as the markets come off the highs with the semis/banks/brokers lagging.

Strong sectors continue to be gaming, metals, airlines, trannies and homies while brokers, banks and semis lag.

Market internals- +1700 on the NYSE and +865 on the NAZ.

OEX: 75 GREEN 25 RED;

WINNERS- AA DELL TGT AES CPB HIG IP EK DOWN CI NXY DD ETR;

LOSERS- COF WFC JPM F AEP MER ABT C RTN LEH SO MDT AMGN BAC;

NDX: 65 GREEN 35 RED;

WINNERS - JOYG NTAP MRVL SEPR VMED PCAR NIHD CTSH ESRX INFY;

LOSERS- PDCO ROST KLAC MCHP GILD CHKP FAST AMAT VRTX BBBY IACI LAMR;

VIX index down almost 5% and about 13% below the 10 day SMA;

Tough for the market to gather steam and make much head way with C JPM MI MTB USB WFC BAC BSC LEH LM MER CME NYX KLAC AMAT AMGN GILD all red.

In addition, the 200 day SMA and the 50% retracement level on the SPX a tough level to penetrate as of now.

The good news, check the charts on the recent Private Equity takeover targets like HET HLT FDC. All looking like the deals are going to happen and once that happens...................