AFTER NOON TRADE

The fun continues as S and P puts ABK/MBI on financial review for potential downgrades. Markets reaction- sell off but I suspect we get back to the highs of the day before 4:00 eastern time.

The DJIA +36, NAZ +30 and SPX +6.

Strongest sectors- semis, oil service, internets, biotech and gaming while banks, metals and drugs lag.

NYSE- 430 net winners;

NAZ- 670 net winners;

NDX- 90 GREEN;

OEX-68 GREEN;

IBD- 55 GREEN;

VIX-flat near 20.15;

TRIN- 1.07 with up volume 1.25X the down;

Watching the NDX internals and they are strong suggesting we get a nice push on the NAZ/NDX before the day ends and that is the way I am playing long QLD.

SPX up and acting pretty well as the financials stay green despite the SP downgrade watch- GS LEH MS green while all the big banks are red.