LOWER OPEN

Markets open lower on the heels of a semi downgrade and over bought conditions with the DJIA -53, NAZ -16 and SPX -7. The RUT/MIDs, which have been the outperformers of late are down a hair more than the big indexes.

Strong sectors include metals, biotechs, homies and drugs while gaming (WYNN/LVS -7%), semis, oils, emerging markets, reits and tech lead the downside.

NYSE internals -1300;

NAZ internals -750;

OEX 15 WINNERS;

NDX 30 WINNERS;

IBD 100 15 WINNERS;

Volatility indexes little changed and now trading near the 10 day SMA's;

Key stocks in the GREEN- CME IBB ISRG JPM NYX WFC; RED- AAPL AMZN BAM BG BIDU C CELG COST CROX GE GS ICE MA MGM MO MS MER POT RIMM SMH UA XOM;

BIGGEST WINNERS- CTXS FISV ERIC AMLN SHLD GRMN CDWC AKAM DISH SPLS MRK BUD SLE AEP WMT TYC WB WFC SLT TKC CEDC TRAK AFSI GLNG PCLN CMTL;

BIGGEST LOSERS- MR LFC SNP RIO SYNA CHL CRNT CTRP CMED INTC LTD COP CVX XOM HPQ S WY WYNN SNDK NVDA JOYG LRCX AMAT BRCM LVLT;

Markets a bit extended and a continuation of the sell off thru most of October would not surprise me. Still expecting a seasonally strong NOV/DEC.