THE OPEN

Markets open lower led down by the financials as the BKX is down almost 3% and the XBD is down 2.5%- GS down graded again - this time Whitney at Oppenheimer- and the stocks is off $6+;

Strong sectors- metals, ags and oils while trannies, real estate, reits, shipping and insurance lag in addition to the aforementioned financials.

NYSE- 600 net losers;

NAZ- 600 net losers;

NDX- 40 GREEN;

OEX- 25 GREEN;

IBD- 35 GREEN;

VIX- higher by .5% at 20.66 and over sold;

Down volume a bit ahead of up;

TRIN- .75;

GOLD- $825;

CRUDE $114;

EURO- 1.491;

Markets are short term over bought and it will be interesting to see when/if the bulls show up- the SPX still over the SMA 50 which is at 1295- so a little cushion on the downside yet. Also note the relative strength from the NAZ/NDX while the RUT lags (small).