THE SRS

Markets closed lower and as is typical at/near the lows of the day. The SPX -15.5 and the NAZ-26.

Strength- ags, drugs, metals and utils while real estate, shipping, energy, banks and gaming lagged.

NYSE- 1550 net losers;

NAZ- 980 net losers;

NDX- 15 GREEN;

OEX- 20 GREEN;

VIX - higher by 5.5% and sitting about 5% above the SMA 10;

RSI (2) levels on major indexes at/near 30 with NDX acting best and DJIA/SPX the worst;

How now? I suspect a bounce early next week - and that gets sold and eventually we get to test the 735 level on the SPX - 50% FIB area.

SRS my big winner on the day as I was in and out a few times and held overnight from yesterday- it is now up 34% off the $53 low from yesterday- which compares nicely to FAZ which is up 46% off its low- FAZ 3X short fins and SRS 2X short Real Estate. Fun fun fun.