OPENING HYPE

The early morning strength in the futures on the heels of the good news out of GE is being met not so surprisingly with selling. The DJIA +81, NAZ +13 and SPX +5.

Strongest sectors- emerging markets, semis, internets, tech, defense and trannies while telecom, biotech, airlines, utils and small caps lag.

Key stocks- generally higher led by ICE TIF GE RIMM NYX NVDSA MTW and POT while UA ISRG CELG BG IBB C KO PG are lower.

NYSE- 325 net winners;

NAZ- FLAT;

NDX-65 WINNERS;

OEX- 60 WINNERS;

IBD 100-70 WINNERS;

VIX- losing about 5% of yesterday's big move higher;

10 year Bond- 3.66%;

Michigan Confidence 80.5 v 74.5 consensus;

The morning rally so far- unimpressive at best as their is very little breadth.

Technically, the market is clearly stretched to the downside as the SPX is about 8% below the 50 SMA. Haven't seen it that far away in either direction in several years.