THE OPEN

Markets are higher this morning on the heels of oversold conditions, nice guidance from INTC, and a buyer of a large stake in BSC. Of course stocks are well off their highs as I type.

Strong sectors include metals, drugs, utilities, defense and semis while internets, homies, oils, brokers and banks lag.

Market internals have flipped to red after being in the green at the open; red 200 on both the NYSE and NAZ.

OEX- 45 GREEN led by MCD T CL BAX AMGN ABT RTN EXC INTC; LOSERS- DELL TYC AA WB BHI EP NXY CPB XRX EMC TGT;

NDX - 50 GREEN- led by APOL AAPL AMLN ADSK RIMM ADBE CELG XRAY AMGN CTAS;

LOSERS- MICC YHOO SHLD TLAB CTSH MNST JNPR EXPE AMZN QCOM;

Volatility indexes up almost 5% and the VIX about 12% above the 10 day SMA.

The early market bounce is disappearing quickly as the NAZ has flipped to down 5 after being higher by over 20 near the open. SMH has also flipped to flat as now AMZN GOOG HPQ AKAM CTSH EBAY INFY YHOO have all flipped to red.

Banks are ugly with C CFC DFS MA MI MTB STT USB WB WFC JPM all red; brokers more mixed with GS BSC CME NDAQ LEH green while ICE LM MER MS NMX NYX all red;

Biotech strong led by AMGN CELG GENZ GILD;

Healthcare green led by PPH ABT COV DGX JNJ LLY MRK SGP SNY WLP;

Oils red- with the exception of XTO (nice mention in barrons);

Retail ugly red with large losses in COH DECK GES PVH SHLD TGT UA;

Guessing - I suspect a rally in the afternoon - just a gut feeling.