UGLY IS UGLY

Markets closed +3 on the DJIA, -22 on the NAZ and +1.6 on the SPX- not too good considering where we traded about 60 minutes before the bell-.

Strong sectors - telecom, utils, steel, oils and drugs while financials, homies, retail and internets lagged.

NYSE- 635 net losers;

NAZ 900 net losers;

NDX- 30 GREEN;

OEX- 50 GREEN;

IBD- 65 GREEN;

VIX- up .5 at 24;

Down volume almost 1.5X up at a heavy 1.6B traded;

For the first six months- not such a great year:

SPX -12.8%;

DJIA - 14.4%

NAZ -13.5%

NDX- 11.9%

RUT -10%

MID -4.6%

LARGE VALUE -15.5%

LARGE GROWTH -10.2%

SMALL VALUE -15%

SMALL GROWTH -5%

VIX +6.4%

OIH + 17.4%

XLE +11.5%

XBD- 29.8%

BKX -34.4%

DRG -14%

GOOG -24%

AAPL -15.3%

Its been an ugly six months - and the next six not looking so good as of now - but maybe we get some good news and a reversion to the mean.

One scenario- oil gets hit $15/20 in a day as demand destruction becomes apparent and the longs quickly flee - I don't think it is that far fetched - as many folks don't like the idea of burning up $4.5 every time they drive 18 miles - so don't be shocked.