THE CLOSE

Markets closed at/near the lows of the day and the 1400 level on the SPX is solidly in the rear view mirror. The DJIA closed down 208, NAZ -45 and SPX -26.

Weakest sectors included financials, insurance, homies, trannies, real estate and gaming while no sectors closed well.

One explanation for the weak performance that I read is the bullishness psychology is gaining steam and hence weak longs are in the markets. Perhaps.

NYSE- 1370 net losers;

NAZ- 1260 net losers;

NDX-13 WINNERS;

OEX- 14 WINNERS;

IBD- 15 WINNERS;

VIX- 19.47 and higher by 7% and trading at the SMA 10- VXO higher by 14% and trading about 3% above the SMA 10;

Up volume about 1/4 Down volume and total volume light at 1.2B shares;

TRIN- 1.85- ugly;

Note the SMA 200 on the SPX- I guess it was pretty pretty big resistance.

RSI (2) levels at near the 20 level on most major indexes- probably see another dip in the early trade tomorrow and then may be worth taking a shot on the long side with QQQQ/QLD- etc.

Also watch the oil price as equities are tending to trade in the opposite direction for now- and crude is way over bought. Note also the $$$$ up as crude/nat gas went higher- a bit odd-