CLOSING LOUSY

Market finally came in a bit in the last hour and closed well off the worst levels of the day - and if you look closely - today was yesterday in reverse.

The SPX +6, NAZ +9 and the DJIA +32.

That Ken Lewis stuff a little bizarre as some politicians come to his defense- not sure of the constituency - but reminded me of the GOP defending Roger Clemens- what was the point-

Strongest sectors- energy, biotech, banks, materials and drugs while real estate, homies, retail and internets lagged.

NYSE- 550 net winners;

NAZ- 800 net winners;

SPX- 322 green and 172 red;

NDX- 54 green;

VIX- down 1% at 28.1 and a little under the SMA 10;

TRIN- .79 with up volume almost 2x the down on light volume;

Key stocks - generally look at about 40 and of those V MA FDX AMZN GS PEP GOOG were lagging most of the day and were a pretty good indication that something was not right with the rally.

RSI (2) levels near 75 on the SPX and about 60 on the NDX- RUT lagging a bit and near 50.

Looking for some chop tomorrow as I suspect we are bounded on the top by today's highs and the bottom by yesterday lows - 955/925 levels on the SPX.

Some good stuff on the web:

Barney Frank - giving/taking with Haines;

Jason linking to the problems with the commodity ETF's;

A little late for the liking the rally?;

VIX +MORE on the plummeting HV;

Kass, who was I suspect the first to turn from bearish to bullish now going the other way- lots of folks were bullish at 666 level but they were generally bullish at the 1566 level also;

Dr. Brett with Life success.