MIDDAY DOWNER

Markets continue to trade lower as the DJIA is now down 255, NAZ -60 and SPX -33.

Strongest sectors- metals, bonds, utils and drugs while banks, shipping homies and real estate lags.

NYSE- 2460 net losers;

NAZ- 1800 net losers;

NDX- 4 GREEN;

OEX- 3 GREEN;

WINNERS- SO ABT HAL JAVA AMLN CHKP NTAP;

LOSERS- FLEX LINTA FWLT STLD MICC VMED NIHD WYNN C BAC RF COF WFC USB AXP XRX;

VIX- higher by 15% at 39.1;

TRIN- 2.08- down volume over 20x the up;

Gold higher by $18;

Market internals as bad as they get and a close at the lows is probably in the cards- presently short SRS and SDS and looking to add on pullups;

Heading to oversold territory as the RSI on the SPX has already gone under the 20 line.