OVERBOUGHT?

Markets seem to be a bit extended at these levels but taking a closer look at several major indexes and the internals tells a bit different story. Overbought, yes NDX/COMPQ/TECH quite overbought - RUT/IWM/VALUE/SPX hardly. Even yesterday with the NDX up 19+, market internals were solidly red on both the NYSE and the NAZ.

Check the NDX chart vs. the RUT, the RUT is still about 6% off its July high while the NDX is well above its number. SPX, about 2.5% below the July high and Value has been getting its clock cleaned by Growth. Check these 2 day RSI numbers- Reversion to the mean?

SPX-39

OEX-50

DWC-38

Large Growth-94

Large Value-24

DJIA 57

RUT 26

NDX 96

COMPQ 87

Small Value-16

Small Growth -53

MSH 98

XLK 90

In other news, JEFF has raised estimated this AM on MGM and increased its target to $118 from $115. MGM also due to play catch up to LVS/WYNN which have been on a tear of late.