UGLY IS UGLY DOES

Not a pretty close as markets closed at the lows of the day down 364 on the DJIA, NAZ -76 and SPX -45. RUT was of course the worst of the indexes down 3.25%.

Strongest of the bad sectors were, hard to believe, RETAIL, metals, drugs, gaming, semis, defense and utils while banks, brokers, china, insurance and homies were the worst of the bad.

Keys stocks almost all in the red with POT RIMM UA MA up and GRMN MTW VMW MS BAC NVDA C BAM JPM the worst/

VIX- up 24% and 22% above the 10 day SMA;

The 200 and 50 day SMA's are both above the closing prices on the SPX and the next stop may be the September lows near 1,430. It also could head back to the 50 day SMA at the 1,515 area. I suggest one look to buy lower and sell higher and right now its lower in a seasonally strong period for the markets. Some RSI (2) on today's close:

SPX 17

OEX 16

NAZ 18

NDX 20

RUT 18

DJIA 15

So not quite at the 10 level for the officially buy signals on the 2 day RSI trading system but pretty close and with the VIX way overbought above the 26 level, it is probably time for dippers to take partial positions although another dip in the morning is likely.

Final thought, we are back where we were before the first rate cut on September 18, so folks who want to buy for rate cuts have another shot at buying essentially before Big Ben took out the knife.