THE OPEN

Markets open lower but are well off their worst levels as the SPX is -6 and the NAZ -13.

Strong sectors- retail, shipping, homies, defense and drugs while metals, energy, real estate and internets lag.

NYSE- 1,060 net losers;

NAZ- 600 net losers;

NDX/OEX- 25 green on each;

VIX- flattish at 42.8 and trading at/near the SMA 10;

TRIN- 1.19 with down volume 3x the up;

Gold - way down at $920.

Looks like choppy action so far which is fairly typical after a big trend day like yesterday- RSI (2) levels near 70 - so just watching for now as the key 804 level on the SPX was breached earlier but was again taken out to the upside. So for now a watching time for this fish.