THE DIPS

I guess its time to declare victory as the YM futures opened the session near 13,800, "dipped" to 13,730 and climbed back to the 13,845 area in late afternoon trading. That is a buy the dip scenario that worked as planned.

Brokers, internets, emerging markets, Australia (+44% ytd), metals, banks, homies and small caps were the biggest winners while laggards included semis as usual along with airlines and oil service. Any shot the semis are bottoming now that everyone sees how poorly they are performing?

NYSE internals +1560;

NAZ internals +900

NDX 60 GREEN;

OEX 85 GREEN

IBD 100-75 WINNERS;

BIG WINNERS- MOS CELG MA FCX HPQ EJ TISI HDB SNDA SLT PKX RIO MSFT MER HIG LEH MS GS COF DELL;

BIG LOSERS- BHI RTN CI NSM BUD NSC BEAS AMAT UAUA XMSR LRCX LVLT WCG VSEA BTJ VDSI EXM NOV;

VIX- down 7% and back under the 10 day SMA;

TWO day RSI readings:

SPX 88

DJIA 91

NDX 66

NAZ 75

RUT 75

OEX 88

Readings getting a bit extended but I believe we rally next week ahead of the fed news on Wednesday. That may be a time to take some off as another sell the news scenario would not be surprising.