AFTERNOON CHECK

Markets are trading a hair off the highs of the day with brokers, gaming, tech, semis, retail, ags and energy leading while bonds, real estate and utils lag.

NYSE- 840 net green;

NAZ- 900 net green;

NDX- 80 GREEN;

OEX- 75 GREEN;

VIX- near the flat line at 43;

TRIN- .8 with up volume more than 2x the down;

Markets looking ok but over bought especially on the tech heavy NAZ/NDX index. Note those indexes the only ones trading over the SMA 50 (1196) on the NDX while the SPX is about 25 under the 870 number and the DJIA aobut 450 under the SMA 50 at 8500.

Not sure why the markets are moving up on the bad news - but it really doesn't matter - it does what it does. Tomorrow is payroll number day and from the looks of the action - folks are expecting a better number.

Continuing here long QLD and DIG as energy continues to trade well.