OVERSOLD

Sorry about the lack of timely posts today but just a bit busy with other stuff. And I won't be around tomorrow as I have some personal business to attend.

Anyhow, markets moved higher today on the heels of big blue and some strong performance out of big cap tech, oils and metals. Gaming, drugs, real estate and biotech were all lower and the markets will probably continue to have a tough time unless they get all the sectors going at once.

Internals were pretty good all around with about 80 out 100 in the green on the NDX/OEX/IBD 100.

Winners- SNDK NVDA LEAP INTC BRCM JNPR EMC IBM ORCL AAPL AA FCSX BPHX MOS POT CNH CF DE RRC;

Losers- HRBN BABY LIFC HOLX GMCR NVO GILD SHLD COST SIRI PAYX DISH HOLX FISV MRK CSC ABT ETR SLE MDT WB PEP HNZ;

Note also- this rally came on considerably lower volume than we have seen of late- (ugh).

Checking the math:

VIX- 22.9 and down 3.3% and trading about 2% under the 10 day SMA;

RSI (2):

SPX 63

DJIA 61

NAZ 61

NDX 63

RUT 53

MID 59

On a more intermediate basis- RSI (14):

SPX 42

DJIA 41

NAZ 38

NDX 39

RUT 38

MID 36

Bottom line, markets are still a oversold in the intermediate term and can probably still move higher to the 1,425/1,450 level on the SPX. Oversold is all relevant and depends on your time frame and definition such as how warm or how cold. I will go with we are still in bounce mode in a pretty strong down trend.

Note also the very very tiny positive divergence on the MACD and an oversold stochastic maybe heading higher.