THE DIP

Despite the extreme over bought condition - equities are higher yet again - but a few warning signs that I see - SPX +.5, NAZ -1 and the DJIA +18.

Strongest sectors- internets, biotech, retail, semis and drugs while nat gas, real estate, gaming, homies and banks lag.

NYSE- 550 net losers;

NAZ- 350 net losers;

SPX- 210 GREEN;

NDX- 50 GREEN;

VIX- flat at 23 and about 14% below the SMA 10;

TRIN- .86 with down volume slightly ahead of up;

The sector strength is kind of hinting that the market rally may be coming to temporary stop near here with gaming real estate and banks lagging.

RSI 2 levels way overbought at /near 97 and the dollar also getting extremely over sold near the support area of 75 and a RSI 2 of 10- so lots of little things adding up to a sell off - although a quick dip is probably the most likely as lots of folks are going to want to get in on the action.