AFTERNOON WEAKNESS

Seems like this markets goes 3 steps down and 2 steps up as today is one of the steps down days with the DJIA down 250+ and the SPX -32 and under the all important support level of 1,490, the low of October 22, Nov 2 and Nov 5. Seems as if we stay under that level we could have some deep falling ahead of us/ or buyers may show up again at that level and scare the bears away.

Anyhow, strong sectors include metals, utils, drugs, insurance and retail while China, banks, brokers and airlines act the worst.

Key stocks- 5 out of 40 in the green led by RIMM POT UA AMZN and GOOG while GRMN VMW MS MTW NVDA and MER are the biggest losers.

Market internals ugly with 4k net losers between the NYSE and NAZ.

NDX - 15 WINNERS;

OEX -5 WINNERS;

IBD 100- 15 WINNERS;

IBD 20 - 4 WINNERS- RIMM POT MOS GOOG;

VIX +14% and close to the once magic 15% above the 10 day SMA level;

Ten year bond near the 4.35% level and how long before a swap by allocators out of bonds and into equities?

Big winners- CTSH RIMM VRSN SIRI DISH CL AES WMT ALL GOOG CF POT PCLN EJ;

DJIA- all 30 lower with AIG AXP and GM the biggest losers;

Lockhart and Poole out with comments that the markets aren't liking as I type. Seems like more rate cuts are on the way as is slower growth, higher inflation and a depressed housing market.