NOON BOUNCE

Markets have turned higher after perhaps putting in an intermediate low this morning. Check the hammer formation on the NDX and how similar that was to the intermediate low put in on August 16.

Small cap value leading the way and higher by 1.4% and the general RUT up .8%. Other standout sectors include drugs, airlines, china, utils, biotech and telecom- lower are oil service, metals, oils, brokers, gaming and tech.

AAPL BIDU EBAY FWLT GOOG NVDA RIMM VMW all still lower but way off the worst levels.

NYSE- 500 net winners;

NAZ- FLAT;

NDX-60 WINNERS;

OEX-70 WINNERS;

IBD 100- 30 WINNERS;

Short term targets- $49.75 on QQQQ (50% retracement) and 1,450 on SPX (61.8 FIB).

Also note the positive divergence on the QQQQ as MACD is making a higher low while QQQQ made a short term lower low.