NOON SWOON

Markets continue to act poorly as an early attempt at a rally fell flat yet again. The NDX, the best performing major index ytd, is performing the worst of the major indexes as AAPL BIDU CSCO EBAY GOOG HPQ INTC MSFT NVDA RIMM VMW are all down sharply.

Strongest sectors- insurance, brokers, banks, trannies and retail;

Internals- 2,300 net losers on the NYSE and NAZ;

OEX/NDX -50 WINNERS out of 200 issues;

IBD 100- 10 WINNERS as recent high flyers get sold as folks decide to lock in recent gains;

VIX -up 2% and VXN, the volatility index on the NDX up over 7%;

Up volume- 212M

Down volume- 352M

Technically, welcome to the 200 SMA on the NAZ as it trades near the 2,600 level. SPX still hovering above 1,450 and the strength in financials may give us a decent close despite the lousy internals.