CLOSING LOWS

Another awful day in the markets as the financials led the markets lower and the 10 year bond moved up to yield under 3.85%. 50 bps cut anyone?

Whenever the rally occurs- if one does - it will be a mother of all rallies;

DJIA closes down 240, NAZ -56 and SPX -33.

Strongest sectors- utils, biotech, trannies and drugs; weakest- real estate, reits, banks, brokers, homies and emerging markets.

Market internals- pretty awful all day with NYSE/NAZ - 3,200 net losers;

OEX/NDX internals about 20 winners of the 200 issues;

IBD 100- 35 WINNERS;

Interesting stats for the year:

XBD -down about 19% for 2007;

BKX - down about 25% for 2007;

RUT -down about 6% for 2007;

RLX- down about 18% for 2007;

Levels to watch on the SPX- its gone thru the recent lows and is now red 1% for the year.

DJIA- 12,800 was support and looks 12,500 is the next level to watch on the downside while 13,100 is resistance.

NDX- recent lows of 1,980 looks like a support target while 2,060 appears to be resistance.

Volume was light at about 1.4B while downside trumped upside volume;

RSI (2) on major indexes:

SPX 24

DJIA 25

RUT 24

NDX 22

NAZ 22

Remember the buy signals at the bottom of the range (near 10) is only applicable in uptrending markets (200 day SMA under the market).

Oh and CFC down to about $8.5, a long way from the BAC conversion price near $20. Not so shrewd after all. And Where has Ned "the bull" Riley been during this correction?