THE CLOSE

Markets closed a bit off the worst levels but gapped down at the open - went lower during the first hour and flat lined the rest of the day.

The SPX closed -22, NAZ -42 and the DJIA -187.

Strongest sectors- junk, semis, internets, telecom, brokers and retail while real estate, energy, trannies, metals and ags lagged.

NYSE- 2100 net losers;

NAZ- 1500 net losers;

NDX- 4 GREEN;

SPX- 16 GREEN;

VIX- higher by 9.5% at 30.8;

TRIN- 2.47- with almost all the volume to the downside- and light volume overall at 1.16B shares traded- just like on up days.

RSI (2) levels:

SPX 10

NAZ 8

NDX 4

RUT 7

Clearly some oversold conditions and I dipped in and bought some QLD - for a quick flip - hopefully for turnaround Tuesday tomorrow-

Also wanted to buy some DIG but it didn't get to my lower target- so on lower prices I plan on buying it.

Lots of talk on stocktwits.com of this being the start of some bigger move lower - not sure but my hunch is lots of folks missed out on much of the move higher and will look to buy the dips- in order to catch up to the other folks who have been long and strong since SPX 1575.