MIDDAY UGLY

Markets continue with lower with a few blips along the way enabling some the opportunity to get short - as days like today seem to end at/near the lows.

Strong sectors- none with steel, ags, gaming, homies, metals and financials the weakest.

NYSE- 2000 net losers;

NAZ- 1625 net losers;

NDX- 9 GREEN;

OEX-8 GREEN;

VIX- higher by 9% and about 13% above the SMA 10;

Down volume about 10x the up;

Gold- $803;

Crude- $108;

Ten year bond- 3.65%;

Doug Kass at realmoney.com looking for a bottom near here saying "this is what bottoms look like" on his latest article.

My guess is we are in for a short term bounce next week which may take us back to 1290 but ultimately I see 1,170 in our future- 50% retracement of the whole move- from 770 to 1575.