RETRACEMENT

Markets have moved higher and are near some important technical levels. The DJIA +42, NAZ +8 and SPX +3.

Sector strength- oils, drugs, reits, real estate and tech while airlines, metals, trannies, banks brokers and homies lag.

Market internals - flipped to flat- all around.

Technical levels- SPX at 1,475 about half way between the lows at 1,370 and the highs at 1,575. DJIA, the same, between 12,500 at the low and 14,100 at the high and currently trading between at 13,300. So probably a area of resistance and with the banks/brokers/semis lagging a move lower from here should not surpise anyone.

VIX also lining up with a sell signal at 23.6 and about the magic 10% below the 10 day SMA.

RSI (2) on major indexes- yeah, also sell areas between 85/90 on most major indexes with DJIA/NDX at 88 and SPX /OEX at 84.