MIDDAY MARKETS

Markets are well off both their highs and lows but internals continue to be crummy and a rally seems like a long shot but maybe a shot worth taking as the markets seem a tad over sold.

Strong sectors include semis, utils and defense while homies, small caps, oils, trannies and retail lag.

Market internals - weak with NYSE at 1350 net losers and NAZ at 1220 net losers;

OEX- 30 WINNERS- MCD CL GS PEP INTC AMGN CCU AXP NSM RTN;

LOSERS- TYC AA EK DELL NXY WMB LTD BDK BHI IP XOM ATI;

NDX - 35 WINNERS- AAPL ATVI XRAY BRCM CTXS CELG RIMM VMED ADBE DISCA;LOSERS- MICC CTSH LVLT JOYG EXPE DELL TLAB XMSR SHLD AKAM QCOM YHOO;

DJIA -13 WINNERS- MCD INTC AXP BA IBM MSFT UTX AIG MRK T HPQ;

LOSERS- AA XOM MMM HD PFE C GM VZ CAT DD DIS;

Down volume almost 4x Up volume.

Two day RSI on major indexes in buy territory-

SPX -14

INDU -14

MID 11

RUT 7

NDX 16

COMPQ 13

Of interest:

GS +.88%

CELG +1%

CL +1.25%

PEP+1%

AAPL +2.5%

BRCM +1.8%

RIMM+1.25%

MTW -3%

LM -3%

BHP -2%

FCX -2.5%

OIH -1.75%

HOC-4.6%

TSO -4.3%

VLO-3%

GES -5.6%

M-3%

UA-3.7%