MORNING MUSH

Markets are lower this morning and the snap back rally anticipated by most traders is taking a bit longer to develop.

SPX -3.5, NAZ -14 and the DJIA -30.

Strongest sectors- Australia, banks, airlines, brokers and reits while nat gas, Latin America, retail, gaming and small caps lag.

NYSE- 800 net losers;

NAZ- 1100 net losers;

SPX - 139/360;

NDX- 12 GREEN;

TRIN- .89 with down volume about 1.5 the up- seems a bit skewed by BAC C FRE and FNM.

VIX- +3% at 25.45 and about 14% above the SMA 10.

The dollar is moving on up again but may run into some nice resistance at the 75 level.

RSI 2 levels as follows:

SPX 13

NAZ 9

NDX 11

RUT 4

DJIA 12

So definitely some buy signals in the short term from the VIX and the RSI 2 levels - problem is probably not a lot of folks expecting a big selloff and that is what we may get- I added to GDX DGP EWA on Friday and if we continue to go lower I will buy more for TT