LOWER TRADE

It continues to rain on investors as most stocks/major indexes are lower after starting a little higher. The Average stock is getting rocked as market internals are way red despite pinkish major market indexes.

Strongest sectors include China, drugs, biotech, emerging markets, oils, defense and large cap growth- worst include airlines, internets, homies, retail, real estate and banks.

Key stocks- down- up are VMW CELG MGM NVDA MSFT KO LVS and DECK- down are GRMN AMZN BIDU ISRG MTW POT MA and ICE;

NYSE- 850 net losers;

NAZ-1,175 net losers;

NDX-35 WINNERS;

OEX-40 WINNERS;

IBD 100- 25 WINNERS;

VIX- FLAT;

Down Volume 2.5X Up Volume;

TRIN 1.49;

Congrats to the team over at the Daily Options Report for finally deconstructing Cramer.

Mentioned this morning that the internals/TRIN etc were not bullish despite the higher indexes.

Not that sure we are going to go straight down into the close so a little rally would not be surprising here.

August lows also coming into play on the SPX at 1370;

The revshark at real money sees a rally coming thinking there is capitulation- not so sure but on my toes watching:

"This action feels like it is getting close to the capitulation stages. That simply means that shareholders no longer care about fundamentals or technicals or the Fed or anything else. They just want out and they want out now.

I believe emotions are extreme enough that we are getting very close to a snap-back rally, and I would not be at all surprised to see a strong intraday reversal today. I'm not placing any big bets on that, but I am ready to move fast, should it look like it is developing."