THE CLOSE

There it is - there it was- markets close at 52 week lows and who knows whats next. The DJIA closed down 216, NAZ -52 and SPX -29- closing at 1304. The prior closing low was on rogue trader day back on January 22, 1310.5 with an inter day low of 1,270 on the 23rd of January.

Strongest sectors- metals, defense, oils, ags and drugs while brokers, airlines, homies, real estate, retail and gaming lagged.

NYSE/NAZ - 4,200 net losers;

NDX -9 WINNERS;

OEX- 5 WINNERS;

IBD 100- 7 WINNERS;

Down volume almost 20X Up volume;

TRIN 2.23;

VIX- higher by 13% and 13% above the SMA 10;

RSI (2) levels:

SPX 10

DJIA 8

NAZ 11

NDX 15

RUT 7

MID 10

So the big news is markets are over sold and the big news is markets broke through key closing levels. Personally, I think the 1,270 number is more important as the inter day low and also the 61.8% fib retracement between the high of 1,576 and the low near 780.

Don't be surprised if there is a nice bounce tomorrow making the folks who just got stopped out re buy.