BUY SIGNALS

Near the noon hour markets are way down with the DJIA -100, NAZ -54 and SPX -9. Shockingly, small cap value is still green while the RUT/MIDs are acting the best of the major indexes down only .3%.

Buy signals abound on the VIX/VXO/VXD/VXN stretch and the RSI (2) trading system. The volatility indexes are stretched as follows from their 10 day SMA's;

VIX +19%

VXO +24%

VXD +19%

VXN +14%

RSI (2) on various major indexes as follows:

SPX 11

OEX 9

DJIA 8

MID 14

RUT 14

NDX 7

COMPQ 7

And for those who want to load up on the three horseman or any other high octane tech you have your chance:

AAPL -6%

AMZN -5.5%

BIDU -10%

CSCO -8%

GOOG -6.5%

RIMM -10%

Seems a little like capitulation- so just a heads up.