THE OPEN

Markets opened higher but are now well off their best levels as the NAZ has flipped to red while the RUT/MID's continue and are down about .5%.

Strong sectors include metals, China, oils, emerging markets, insurance, banks and homies while airlines, internets, utils, reits and retail lags.

Key stocks generally higher (25 out of 40) led by MA MTW NVDA BG XOME BAC RIMM and ICE while BIDU C TIF LVS MSFT DECK WYNN GS and VMW are lower.

NYSE internals- FLAT;

NAZ internals - 412 net losers;

NDX 45 GREEN;

OEX 50 GREEN;

IBD 100-65 GREEN;

WINNERS- STP GSOL SNCR FSTR DRYS MTL PKX BBL BHP MR MA XMSR VRTX EXPD NVDA SIRI ORCL RYAAY ERIC AIG BHI NXY XOM BAC CVX CSCO AA JPM;

LOSERS- C MSFT LEH IP F BDK EP CBS VZ EXC MS CTSH JAVA NIHD INFY ATVI YHOO WFMI EXPE SYMC DSX CRNT BIDU CYNO ININ EXLS SSRX PFWD FMCN EJ;

VIX -down 5% and about 8% above the 10 day SMA's;

Ten year Bond rate down to 4.359%;

The 50 day SMA on the SPX was again overhead resistance and hopefully we won't go back to the 1,490 area. Testing that level again would not be healthy as the more times support is tested the weaker it gets.

The daily pivot point is 1,501 and the markets may bounce off those levels.