OPENING TRADE

Markets open mixed but have since flipped to red on the heels of some lousy economic news (ISM/Construction).

The DJIA -96, NAZ -9 and SPX -8.

Strongest sectors- same old/same old- metals, oils, emerging markets, biotech, drugs and gaming while semis, airlines, banks, financials and brokers are leading lower.

Key stocks -15 out of 40 in the green led by AMZN UA WYNN ISRG POT CELG RIMM LVS and BIDU- while INTC GRMN MS NYX MTW and MER are lagging.

NYSE- 160 net red;

NAZ- 400 net red;

NDX -45 GREEN;

OEX -30 GREEN;

IBD 100-55 GREEN;

WINNERS- CMED VIP AMZN SNCR SWN DNR CYBS KWK ENS FMCN POT BRCM VMED YHOO SHLD ISRG LVLT RIMM NXY HAL SLB CI AMGN BNI ORCL HD ABT;

LOSERS- NSM INTC EMC FDX MS JPM TXN LEH WFC COF MER TISI ABAX OXPS ARGN GMCR GRMN CPLA PSEM DE MTW BUCY EDU DISH LEAP CTSH SBUX UAUA JOYG BBBY;

VIX-higher by 2% and trading at buy signal numbers over 10% above the 10 SMA;

Up volume about 75% of Down volume;

Technically, an ugly beginning for the year and support on the SPX probably near the 1,450/1,460 number. The 50/200 SMA's on the SPX are both above the current price and the (down sloping) 50 is bearishly below the 200. Seems like the only thing bulls have going for them is decent valuations.