MIDDAY MARKETS

Markets continue to trade lower with continued poor action in the average stock as indexes continue to outperform.

Strongest sectors- airlines, utils, trannies, gaming, defense and big caps-emerging markets, metals, brokers, real estate, banks and retail the worst.

Key stocks- mostly lower - winners include MA MSFT ICE GRMN LVS CME WYNN and KO while VMW MER NVDA MS C ISRG BAC TIF DECK the biggest losers.

Market internals awful all around as NYSE/NAZ show a net of 3,100 losers while NDX/OEX show about 25 winners on each index. IBD 100- worse with 15 winners.

VIX - up about 6%;

We are at an interesting junction technically as the DJIA/SPX are both trading at the 50% retracement level between the highs on October 11 and the lows on August 16. GS also 50% between the recent high at 250 and the low at 157.

Bottom line, if you want to take a shot on a long side, this may be a good spot with defined risk as markets tend to bounce from these technical levels.

RSI (2) on various indexes at low end of ranges but no buy signals yet:

SPX 23

DJIA 21

OEX 25

RUT 20

MID 17

NDX 23

NAZ 24