THE CLOSE

Markets closed lower but off the worst levels as a surge in the final thirty minutes brought the DJIA back by 70 to close down 134, NAZ down 31 and the SPX down 15 after testing its SMA 50 at 1380.

Strong sectors were solar, metals, oils and biotech while brokers, banks, gaming and real estate lagged.

NYSE- 1160 net losers;

NAZ- 1140 net losers;

NDX- 15 WINNERS;

OEX-8 WINNERS;

IBD- 50 GREEN;

VIX- up 11% at 19.8 and trading about 7% above the SMA 10;

TRIN- 1.46 with down volume about 3x up volume- light volume over all;

Not ready to buy yet as I suspect the beginning of the month 401K money came in to lift the markets into the close. A lower low tomorrow would not be surprising to this fish and as always I will be keying on the BKX/XBD.

Hopefully some made some good dough on the SKF downgrade as SP downgraded. Probably goes higher but as usual not in a straight line.