THE CLOSE

Markets closed lower but well off their worst levels as the DJIA closed down 101, NAZ -11 and SPX -8.

Strongest sectors included homies, real estate and retail while oils, metals, defense and banks lagged.

NYSE- 630 net losers;

NAZ- 390 net losers;

NDX-40 GREEN;

OEX-30 GREEN;

IBD- 30 GREEN;

VIX- up 2% at 20.3;

Down volume not quite 2X up volume and light again at less than 1.3B shares.

LEH the story of the day as rumors were out they went to the window - and the market tanked- and then they denied they went to the window and the market rallied. Shades of BSC as rumors are all over the place and how many folks are going to decide to leave LEH and let some one else be their client.

In addition, the important May lows held so maybe some good news for the bulls.