THE CLOSE

Equities up crude down the name of the game today as oil lost more than $4 and now trades near the $128.5 level. Not sure how much further from here but if it turns up - think Thursday (inventory numbers) the markets probably head lower.

Anyhow, the DJIA closed up 67, NAZ +36.5 and the SPX +9.5.

Sector strength found in all the logical areas- trannies, semis, brokers, tech, homies, real estate and retail while oils, metals, steel and ags lagged.

NYSE- 825 net winners;

NAZ- 860 net winners;

NDX-88 GREEN;

OEX- 75 GREEN;

IBD- 50 GREEN;

VIX- closes near the flat line and at the SMA 10;

TRIN- 1.14;

Up volume about 1.5X down - with very light volume again;

RSI (2) levels near the 50 level on most major indexes cept for the NAZ/NDX which are getting a bit ahead of themselves at/near the 70/80 levels.

Bottom line- keep a chart of crude near by as that direction should dictate where the equity markets go for now- and some talk about a top as chatter continues for rationalization of why $140 is an appropriate level. The chart looks a bit parabolic and a pullback to the 61.8 level is probably going to happen ($115 area).