THE CLOSE

Markets did a complete U turn in the late morning as the dollar began to rally - causing the market to tank- the SPX closed -12.6, NAZ -13 and the DJIA -104.

Strongest sectors- internets, semis, retail and junk while nat gas, metals, banks, airlines and biotech lagged.

NYSE- 1555 net losers;

NAZ- 800 net losers;

SPX - 100 GREEN;

NDX- 27 GREEN;

VIX- 24.3 and up 9% on the day and at the 110% of the SMA 10 level.

TRIN- 2.29 with down volume about 8x the up.

RSI 2 levels as follows:

SPX -14

DJIA -17

NAZ -18

NDX-20

RUT -13

XLE -6

XLK -18

XLF-17

BKX 14

EWA 17

EWC 6

EWZ 21

EEM 14

RSI 2 and the VIX giving clear signs the markets are over sold here and worth a shot on the long side - I bought some SSO near the close at 35.04 and feel pretty good about the purchase.

EWA EWC EWZ also looking good as buy on the dip candidates and we will probably see some very good support at the SMA 50 on the SPX should it get there (probably wont) - at 1048 level.