MORNING REVIEW

Markets are way up on the heels of the better than expected dopey inflation data. Their gas prices are down- mine- not so far down. The DJIA +124, NAZ +26 and SPX +12.5.

Strongest sectors -semis, telecom, retail, trannies and steel while oils, ags, metals, utils and real estate lag.

NYSE- 1150 net winner;

NAZ 730 net winners;

NDX- 85 GREEN;

OEX- 85 GREEN;

IBD- 60 GREEN;

Key stocks- WINNERS- UA NVDA KLAC MGM MON SMH LVS DECK RIMM WYNN- LOSERS- CAT AMGN BG;

VIX- down 4% at 17.25- and trading 7% under the SMA 10;

Up volume 4X down;

RSI (2) levels on most major index now at/near 90's with the exception of the DJIA- Big resistance up above at the 1420/1430 levels on the SPX as it was prior resistance and coming to the SMA 200. So heads up if you have been long and strong.