THE SURPRISING CLOSE

Markets closed the day near the lows as the bulls seemed to be in control before the last hour sell down- The SPX closed down 1.5, NAZ +2 and the DJIA -29.

Strongest sectors- materials, semis, energy, junk and retail while banks, fins, real estate, homies and small caps lagged.

NYSE- 600 net winners;

NAZ- flat internals;

SP 500- flat internals;

NDX- 62 GREEN;

Volume flat on NYSE and 2/1 green on the NAZ;

VIX - down 55 at 28.8;

Another day of good trades as the SSO was the weapon of choice - bought the early test of the VWAP and sold most into the R1 on the daily chart- not bad for a sloppy day-

Markets over bought a bit and maybe starting a new leg lower as the close was ugly for the bulls.

RSI (2) on major indexes near 70 on the SPX and 90 on the NDX-

VIX also starting to give signals as for the first time in quite a while it closed 10% under the SMA 10;

Saw this interesting poll from Gallup a few moments ago and it just shows where the public stands and where Kudlow stands on the issue;

Some thoughts on the VIX from Bill and Barrons;

And John Paulson loading up on the yellow metal;

Anticipating sloppy trading for the rest of the week - but willing to deal with it;