THEOPEN

Markets are lower - way lower on the heels of the GM news and even this from MS which isn't helping the longs. SPX -24.5 and NAZ 47 as I type.

Strongest sectors- gold, bonds, metals and internets while shipping, gaming, fins and homies lag.

NYSE- 2470 net losers;

NAZ- 1635 net losers;

NDX/OEX- 7 GREEN among the 200 stocks;

VIX- higher by 10 % and heading to levels that may give buyers some comfort;

Gold higher by $4 and crude down $2+;

Love Pisani- who I think just gets worse every year- last week it was a great rally - this week its "hey we have rallied 20% + what do you expect"?

Levels I am watching now are the SMA 50 at 792 and then loads of resistance near the 800/805 levels.

My trade will probably to fade any rally that approaches 800 or jump on a decent pull up - lots of longs who bought the last few days who would love to exit higher- when just the other day every one wanted to buy any pullback.