THE OPEN

Markets, as usual, start the day lower with more fear in the financial sector as both FRE and FNM trade down another 20% - and they are running out of 20% moves as they become penny stocks under the $5 level-

Strong sectors include steel, oils, metals and ags while gaming, banks, trannies and homies lag.

NYSE- 500 net losers;

NAZ- flattish internals;

NDX- 50 GREEN;

OEX- 35 GREEN;

VIX- flattish at 21.35;

Up and down volume near even;

Note the jig in some of the old natty gas favorites- XTO CNQ -maybe foretelling another move higher in nat gas.

Market bouncing as I type with the NAZ/NDX/RUT leading and for now looks like an over sold bounce as markets did reach RSI (2) levels under 10 - also the 50% retrace on the SPX at/near 1255 got close at 1261;

Bottom line- I expect a short term bounce - but expected that to be sold soon enough- as it becomes clearer that the financials are eventually going lower with some going to zero.