SELL THE GAP

Markets have gone straight south since the open and support levels have been taken out yet again. The DJIA +50, NAZ +23 and SPX +10.

Sector strength- telecoms, oils, emerging markets, tech, biotech and metals; Weakness- financials, banks, airlines, retail, reits, real estate and homies;

Key stocks- 63% higher led by MTW NVDA LVS XOM RIMM ICE GS; Losers- C BAC GRMN MCD ISRG DECK MA DECK TIF;

Market internals - NYSE- 600 net winners; NAZ 325 net winners;

NDX- 65 WINNERS;

OEX -65 WINNERS;

IBD 100-80 WINNERS;

IBD 20- 15 WINNERS;

Winners- WFT PCP GILD GENZ DE MCHP CSCO NVDA MXIM JNPR GILD QCOM T MMM SLB ORCL CVX HPQ ROK PEP TELOZ EJ HRBN MTL TKC FTK TKC SNHY FMCN MEE STP;

Losers- CYNO ITEX GRMN BLK HMSY BTJ ISRG MR GIGM C WB COF BAC EK RF BA LEAP AKAM UAUA PETM CHKP ISRG JAVA BBBY WFMI NIHD;

VIX- down 5%

VXV - down 3.5%

Up volume a bit ahead of down volume;

Sitting on my hands as I wait but not interested in shorting and not interested in buying until I see some stabilization. Note the SPX trading at the 200 SMA and the NDX has slipped below the 50 SMA and below the 2,105 level. So just watching.