I was hoping for the green close but it didn't quite work out that way as the DJIA closed down 34, NAZ -53 and the SPX, which was green a few moments before the bell, was down one point. Folks got a little scared as they read this news in the middle of the day.

Check out some of the sectors, brokerage index (XBD) up .25%, BKX up 1.3%, utils +2% and small cap value+1.5%. RUT also closed green, higher by .6%.

Up volume better than Down volume on over 2B shares traded. Bulls should be encouraged by those numbers.

Key stocks- 15 out of 40 green with MS BG XOM NYX LVS JPM COST MO BAC the biggest winners while VMW BIDU RIMM NVDA ISRG GOOG AAPL MA GRMN the biggest losers.

Market internals were almost flat on the NYSE/NAZ after being way red for most of the day.

OEX- 55 WINNERS- ROK COF MS F ALL RF SO WFC KO USB; LOSERS- CSCO LTD ORCL EMC GOOG IBM HPQ INTC AIG;

NDX -30 WINNERS- CEPH BIIB APOL VRTX DISH SEPR CHRW XRAY PDCO CTAS- LOSERS-CSCO QCOM ORCL RIMM BRCM NVDA INTY ISRG AAPL NTAP GOOG;

IBD 100-38 WINNERS- EXLS CTRP MBT FSTR VIP WFR FTK AIRM TKC FCX-LOSERS-HDNG VMW EJ BIDU SSRX PCLN WX FMCN RIMM CMED GSOL ISRG;

VIX- down .5% and still way over bought;

No idea if we are "out of the woods" but it felt like capitulation as all the best performers of the year were sold heavily. RIMM GOOG AAPL AMZN BIDU etc all down big. Most of the brokers/banks closed green after getting crushed over the past few weeks. FWIW, C is down 40% on the year while the BKX index is down a hair over 20%. A bit sold out IMVHO.

The SPX touched the 61.8% FIB retracement level near 1,450 and bounced 25 points off of that level. The 200 day SMA is a bit above at 1,483 and the 50 day way above at 1,516, so technically those buy signals are not in place cause the indexes are under the 200 day SMA's although I suspect they will be above the 200 in another day or so.