THE PERFECTION

Markets closed lower but well off their worst levels - and note the QQQQ above- tech lagged in the morning but in the afternoon the NDX hit the SMA 200 and bounced nicely-

SPX -12, NAZ 43 and DJIA 102.

Strongest sectors- drugs, biotech, ags and retail while real estate, homies, shippers, semis and telecom lagged.

NYSE- 1,000 net losers;

NAZ - 900 net losers;

SPX- 135 green and 360 red;

NDX -20 GREEN;

OEX- 30 GREEN;

VIX- higher by 3% at 33.4;

Markets held in the afternoon as the SPX 900 level came into play - also QQQQ at/near 34 was picked up by the bulls at the SMA 200-

Tomorrow we have NFP at 8.30 and the ADP number -even though it was good yesterday was sold - market only came yesterday when the stress test info leaked - so we may see a similar reaction regardless of the number - SELL THE NEWS;

RSI (2) levels rational once again:

SPX - 48

NDX 12

OEX 54

NAZ 17

DJIA 44

RUT 23

This fish traded DIG and SRS today and both were pretty good- tomorrow another day.

WFC announces a secondary for $6 b shares and lets see how many fins follow suit and - lets watch the reaction- Dougie Kass saying they are now priced to perfection.