THE CLOSE

There it was, a dreadful performance by the financials weighed on the major indexes despite market internals that were actually ok.

Strongest sectors- commodities, oil service, utils drugs and healthcare while airlines, banks, homies, retail and gaming the biggest losers.

NYSE 600 net losers;

NAZ 420 net losers;

NDX- 20 WINNERS;

OEX-30 WINNERS;

IBD 100- 45 WINNERS

VIX-higher by 7% - and approaching the 10 SMA;

Down volume a little move than 2X Up volume;

TRIN- 1.53;

Markets may be giving the clue that the rally was lots of short covering and futures rallies for now will be shorted and technicals/charts are the thing to watch.

Technically, looks like the SPX could head back to the 1,340 levels.

RSI (2) levels:

SPX 50

DJIA 49

NAZ 42

NDX 37

RUT 63

MID 67

GOOG spanked yet again and down about 4% on the day and after hitting a high near $750, the stock has been hammered by 34%. My question- any shot that a bunch of MSFT/YHOO software engineers could possibly provide a better mousetrap/search engine. And if so, will GOOG suffer the same consequences of just about every other tech stock - including this short list- SUNW DELL DEC NOVL CSCO EBAY PMCS AMCC ARBA INTC MSFT YHOO and on and on. Tech stocks seem to eventually get out done technoligically and I suspect GOOG will be no different. If not MSFT/YHOO some other company.

Finally, some chatter at Adam's site about the bloggers and their traffic. My take, the traffic seems to follow the VIX - it gets to extreme levels when the participants are the most bearish.