STRETCHING

Markets bounced around most of the day with the DJIA closing down 107, NAZ 6 and SPX 5.

Sector strength was found in metals, steel, oil service and shipping while gaming, financials, banks and internets lagged.

Market intenals were red but not horrible and the action in the NDX was actually ok as it closed flat but lots of stocks like AAPL RIMM GOOG etc closed at/near their highs.

So next week could bring a nice over sold bounce as we are again stretched far away from the SMA 50 on the SPX- about 7%- similar to the stretches back in January and March- the prior lows.

In addition check the action in the DXD- the 2X inverse DJIA- volume spiking to prior highs -(the market lows) and check the RSI (2) - a bit over bought in reverse. And going long on the volume spikes in double inverse ETF's seems to be a pretty good strategy in the past- and just imagine if we could get crude back down a few bucks- which is probably not a horrible bet.

Cramer also may be setting up for a good contra tell as he wants to sell at DJIA 12K and buy em back at DJIA 10K- not so easy - especially if we don't get there- and check the VIDEO on the TG site- comic relief from the real King of Comedy.