THE CLOSE

Markets closed off their worst levels but could not get any significant rally going despite the midday try. The DJIA closed down 219, NAZ -43 and SPX -21.

Strongest sectors included metals, oils, internets and biotechs and while airlines, homies, semis, brokers and banks were the worst.

Market internals were weak on the OEX/NDX but the NYSE only showed 470 more losers than winners- NAZ 1,000 net losers; Major indexes far worse than the internals showed;

VIX higher by 4% and trading about 13% above the 10 day SMA;

Up volume about 28% of overall volume and total volume light at 1.35 Billion shs;

10 year Bond rate down to 3.90% and the lowest since early December;

Technically, we closed near the 1,450 level on the SPX and just maybe a little bounce tomorrow on the heels of the expected big inventory draw in crude and way oversold conditions.

My QQQQ purchase near the $50.35 level.