THE OPEN

Markets open higher on the heels of more calming words out of BSC after the GS effect from yesterday. The DJIA is +25, NAZ +3 and SPX +5. Midcaps and Large Value the best performing major indexes.

Strong sectors, the old reliables, China and metals with brokers, oils, homies, financials, and real estate the other leaders. Laggards include semis, airlines, internets, retail and gaming.

Key stocks- about 75% in the green led by UA BIDU POT VMW RIMM C ISRG DECK and AAPL while TIF WYNN MTW LVS NYX KLAC BAC and WINTEL are the biggest losers.

Wacky internals with the NYSE+875, NAZ FLAT, NDX 30 WINNERS, OEX 55 WINNERS and IBD 100-85 WINNERS;

Bottom line - old reliables are leading as proven by the IBD 100- SSRX KWK MDR HDB DSX OII BIDU STP CHL YGE AGU POT SID BGC CLB;

Markets ran into heavy selling at old reliable -SPX 1,490, used to be big support on the SPX and now big resistance, also the 200 day is at the 1,484 level, so more resistance. In addition, DJIA hit it's head at the 50% retracement level of 13,360.

RSI (2) also getting a bit over bought as the major mkt indexes sit near 80 level;

Semis acting poorly along with WINTEL not helping the bulls as the NDX futures were up about 35 and now up 10 as I type.

I don't expect a big sell off as the folks who missed out on yesterdays rally may want to come in and be involved on the long side.