CLOSING THOUGHTS

Markets closed higher but off the best levels of the day as the DJIA was +133, NAZ +9 and SPX +12.

Strong sectors Brokers, retail, reits, trannies and banks with metals, silvers, biotechs, semis and small caps lagging.

NYSE internals- +565;

NAZ internals +85;

OEX 87 UP 13 DOWN;

NDX 65 UP 35 DOWN;

VIX was flat on the day and is trading at/near the 10 day SMA- no signals yet.

Key stocks in the green included BSC GS LEH MER MS CME TROW MTB MI MA JPM CFC C BAC BIDU GOOG MSFT RIMM GE LVS WYNN AMGN;

Red stocks included ICE MGM SGP MO SNDK JNPR APOL TEVA ADBE EXPE GENZ CSCO CELG;

The SPX closed near the 50 day SMA and slid about 6 points off the day's high water mark. The DJIA also closed at/near the 50 day SMA and about 45 points off the high of the day. The NDX compfortably above all the major moving averages and is the best performing major index of late but not today. My guess also is that if NDX pulls back it will be a nice buying opportunity as it is just about 60 points off the July highs.

Two day RSI's on the major indexes as follows:

SPX -89

DJIA 87

NDX 86

RUT 58

COMPQ -73

MID 69

So most are at/near sell signals but it just bothers me a bit that most are above support at the 50 day SMA's and buyers may show at those levels. Bottom line, not anxsious to sell yet and if the markets do pullback I would be a buyer.