AFTERNOON SWOON

Markets are back to mixed on the day with the NAZ/NDX continuing to out perform the other major indexes. The reason for the sell off apparently the ABK fiasco as the stock is off 40% and the secondary buyers from a month or so ago are way under water.

Strong sectors- telecom, defense, semis, reits, tech and drugs while metals, homies, ags, airlines and banks lag.

NYSE/NAZ -flat internals;

NDX - 70 GREEN;

OEX-50 GREEN;

VIX- down 1% and about 6% below the SMA 10;

Down volume a bit more than up;

TRIN- 1.19;

Nat Gas +1.8%;

Gold -$909;

Crude- $118+;

Markets seem to have hit a wall near SPX 1390 and until that number gets pierced- when/if - we have to assume its a sell the rally number.

NDX looks good for now and the internals "telling" that another rally this afternoon in that index seems likely.