THE CLOSE

Markets continued the choppy trade and closed flat on the SPX primarily due to the oils and lower on the NAZ/NDX- also note the RUT/MID group were the best performers.

Strong sectors- oils, steel, ags, gaming, metals and biotech while brokers, retail, internets, drugs and trannies lagged.

NYSE- 900 net winners;

NAZ- 375 net winners;

NDX /OEX -40 green on each'

VIX- down 4% at/near 23 and at the 90% of SMA 10 line;

Volume- very light with up better than down;

Short term the markets are somewhat over bought with RSI (2) levels at/near the 80 level on most major indexes- and with the VIX taking the recent hit - more reason why the markets may find turnaround Tuesday tomorrow- lower as the next big bank - WB reports- lower quality and more risk.

And have the financials bottomed? My guess is the real question is whether real estate has bottomed- if R/E drops another 10/15% won't most of the banks/financials be insolvent due to leverage- ?