CLOSING HIGHER

Markets closed near the high and above the flat line after opening almost 100 points lower on the DJIA. The DJIA closed +18, NAZ +1 and SPX +.22 points. The RUT was the big winner on the day up .37%.

Strongest sectors included homies, airlines, defense, internets, retail and brokers while semis, biotechs, drugs and tech lagged.

NYSE internals +270;

NAZ internals +175;

OEX - 50 WINNERS- ATI AA GM LTD MCD AVP UTX GS KO GOOG; LOSERS- AXP DELL TWX ORCL NSC S INTC BMY AMGN MS XRX BNI;

NDX- 53 WINNERS- YHOO BEAS XMSR SNDK AKAM VMED CHRW FAST RIMM JOYG; LOSERS- ISRG MICC NVDA RYAAY DELL LVLT ESRX ORCL S INTC APOL;

VIX FLAT;

Key stocks mainly higher led by GS BSC LM NYX RIMM GOOG BIDU AMZN AAPL TIF SHLD JWN LVS WYNN BLUD SGP BAC C KO XOM;

SPX DJIA NDX all hanging in above their 50 day SMA's after sinking below earlier this morning. Looks like they want to go higher in front of the big FED meeting on Tuesday and probably after also. Two day RSI numbers on major indexes near the high end of 90 on the SPX/DJIA/NDX and 72 on the lagging RUT. Resistance remains above at the 1490/1505 levels but I suspect we may exceed those numbers sometime next week. So bullish for now and looking to buy any bad news on a Fed disappointment and the RUT may be the place as it has lagged and may be ready to play some catch up. I stand by my "stocks are cheap" declaration as the SPX/DJIA trades near the 14/15 PE level with the 10 year bond rate at 4.46%.