THE CLOSE

The markets indexes did indeed bounce off their 50% retracement levels but one could hardly tell by looking at the internals on the NYSE. More than twice as many losers as winners on that exchange while the OEX showed about an equal number of advancers as gainers. The NDX, a different story with 30 up and 70 down while the IBD 100 was worse with 3 losers to every winner.

Strong sectors included airlines, homies, trannies, gaming and defense while emerging markets, metals, real estate and biotech were the worst.

VIX - closed FLAT at 22.6;

Technically, the indexes made some progress for the bulls as the SPX closed a hair under the all important 1,490 level and regained the right side of the 200 SMA.

The DJIA actually closed at its 50 SMA and above the 200 SMA.

The NDX was the weakest index and closed below the important 2,105 level.

Just guessing that not much happens tomorrow and maybe we can regain some upside momentum next week.