TECHNICALS

Markets are higher but off their best levels as traders may have decided to take profits before the rush.

Strong sectors- banks, brokers, telecom, trannies and retail while metals, oils and homies lag.

Market internals also well off their best levels with 2,000 net winners on the NYSE/NAZ compared to +2600 earlier in the morning.

Ultra light volume again and next week probably worse as Labor day only 10 days away.

Checking the VIX/SPX looks like resistance right above at the 1300 level and VIX also getting a little washed out here near the 19 level- note we were about 10% below the SMA 10 earlier and have since bounced from those levels-also note the financials are starting to roll over with LEH about 5% off the best levels and AIG MTB WB BLK red.