MIDDAY UPDATE

Markets are trading lower but are still above recent areas of support. SPX -9 at 884, NAZ 3 and DJIA 50.

Strongest sectors -ags, trannies, internets and tech while energy, real estate, banks and materials lag.

NYSE- 650 net losers;

NAZ- 400 net losers;

NDX- 46 GREEN;

RUT 2K - 700 net losers;

VIX - higher by 2.4% at 32.1;

TRIN- 1.95 with down volume about 3x the up;

Markets are weakening this afternoon as the news of more dealership closings sinks in with the bulls. Interesting action as GS MS XBD are flat to up while real estate and energy are getting torched.

RSI - (2) levels -

SPX 25

NAZ 42

NDX 48

DJIA 26

RUT 2K 31

So looking to sell my QLD into any decent pop this afternoon and if no pop will trail the stop to the recent lows- but expecting the pop - and then going to the beach.

PRE MARKET TRADING

Markets are set to open lower and every one asking the same question - yeah - how low are we going and is this the beginning of a new downtrend- don't know but I have my stops in place near the SPX 875 area - and check Quint- he is pretty pretty good.

I am still long and strong DBA/DBC - sold some UNG yesterday and looking for another entry point. Also looking at MOO/POT/MOS as those are some of the strongest areas in the markets.

Nick Fenton with his ticker tank;

Jason on when to IGNORE;

Kass on chasing value;

This can't be that bad;

The YHOO now bullish on YHOO;

BIG on the stocks over the 50 SMA;

More TARP and is there any chance they don't need it in light of comp restrictions to come?;

Corey on TICKS;

Discipline and playing your strengths;

THE CLOSE

Markets closed higher but off their best levels led by the tech heavy NAZ/NDX - SPX +9 and NAZ +25;

Strongest sectors - banks, real estate, fins, ags and semis while retail, drugs, energy and telecom lagged.

SPX - 377 green;

NDX - 80 green;

NYSE - 1300 net green;

TRIN - .67 with up volume about 4x the down;

VIX- lower by 6.75% at 31.4;

Strange day as the internals were strong all day while the markets had a few decent sized sell offs during the afternoon- and it absolutely didn't close at/near the highs.

I had some good trades in UNG DIG and SSO - and holding some QLD over night-

RSI (2) levels still over sold near 40 on major indexes and now we have a pretty good stop level at/near today's lows or the 875/880 level on the SPX. Seems like lots of buyers want to get in at that area.

THE FEEL

Sloppy trading so far this morning with a bottom on the ES near the important 880 level and a top at the 888 area - although the market feels like it wants to move on up.

Strong sectors- semis, homies, brokers and biotech while materials, energy, metals and drugs lag.

SPX - 340+ 155 red;

NYSE 450 net green;

NAZ 550 net green;

Up volume about 1.5x the down;

Stocks feel like they want to move higher - and I am long SSO - also feels like lots of support at ES 880 with strong buyers at that level.

10 year bond at 3.14%;

Ag stocks moving up with DBA higher by .75%.

PRE MARKETS AND SUPPORT

Equity futures markets trading a hair above fair value while metals, crude and grains are all lower.

The area I will be watching - about 880 on the SPX as it is the rising 20 day EMA - trading under their for any length of time and it could get ugly- Kevin Ferry on CNBC just mentioned 877- so same ball park for support.

Also, was reading Gartman's letter yesterday and the in depth discussion on the grains seemed pretty bullish. The chart looks pretty good on DBA to a run back to the 28/29 levels.

Dr. Brett on how he separates short covering from real buying;

The thaw in LIBOR;

The BUST;

The oil demand;

Three sell triggers out of four;

Drug lobbying going on up;

Foreclosures not so good signaling little relief;

This leading indicator may be saying NO;

KASS now on the dark side;

FARI with a nice blog and some timing charts;

Sykes with new Tykes;

Mozilo hearing some footsteps - anyone sad about this one?;

BESPOKE with the laggards;

Stockchartist with the ten ways to manage your trading risk;

Jon Heyman on Clemens and he is quite the TWITTERER;

THE CLOSE

A fairly uneventful day as markets gapped down over night and basically stayed with out going to any great extreme in either direction- if this had happened three months ago we probably would have closed down 350 on the DJIA -

Strongest sectors today included drugs, gold, commodities, semis and retail while materials, reits and homies lagged.

NYSE - 2500 net losers;

NAZ- 1900 net losers;

SPX - 46 green and 455 red;

NDX- 8 green;

VIX - higher by 6% at 33.65;

Heavier volume at 1.8 b shares with down volume about 12x the up;

RSI (2) levels generally near 10 with big indexes a hair over and NAZ/NDX lower at about 5;

Today - just some quick day trades with some winners SRS QID and some losers SSO -

Tomorrow - if we gap down than a trade to the upside seems like the correct strategy - but will watch and wait -

THE DB's

Markets are trading lower but off the worst levels of the morning - the SPX -13, NAZ -30 and the DJIA -120.

Strongest sectors- drugs, metals, commodities, telecom and energy while homies, materials, reits, trannies and banks lag.

NYSE- 2,150 net losers;

NAZ- 1,600 net losers;

SP 500 80 green 420 red;

NDX- 10 GREEN;

OEX- 25 GREEN;

VIX - higher by 3% at 32.7;

Gold higher, Crud and nat gas near unch and the 10 year rate at 3.107:

Equities made their lows in the first 10 minutes and have bounced- an interesting area to trade may be the DBA/DBC etf's which are in nice uptrends and I suspect will continue to move higher.

Other longs I am looking to buy (not necessarily today) include LUK FCX BHP SMH and L.

RSI (2) levels now in buy able territory:

QQQQ 4

SPY 14

DJIA 22

RUT 11

THE SMH

Equity futures trading down this morning and below fair value - and watching the tape yesterday - the market seems to want to go higher - as yesterday afternoon was the perfect time for it to sell off hard - but no dice for the bears.

I bought some QLD/SSO into the close and am looking to add to my DBA/DBC/UNG commodity group and looking to start positions in KOL MOO and USO - SMH also looking interesting on this pullback to the SMA 50 and an RSI (2) of under 10.

In the news:

Forbes looking at social security and the implications now;

BESPOKE on the Dollar Downtrend and Bloomberg on the 7 week low;

Looks like more money in play at Madoff's;

Lets see how this plays out today;

Curve watching from Bloomberg;

ZH on short covering;

Another April record;

CLOSING MOVES

Markets closed mixed with the SPX down a point, DJIA +50 and the NAZ -15.

Strong sectors included metals, ags, drugs, energy and telecom while banks, homies, trannies and semis lagged.

NYSE- 550 net losers;

NAZ - 900 net losers;

SPX - 180+ and 320 down;

RUT - 530+ and 1320 down;

TRIN- 1.76 with down about 3x the up volume;

VIX - down 3.5% at 31.75;

Gold up near $925 and crude fell back a bit from early highs to $56;

Equity markets resilient today as the early strength was sold and then the weakness was bought and bought heavily- except for the NDX which was the weakest area all day.

And expecting a flip tomorrow - long NDX qqqq all at/near 200 SMA - anxious to see if she holds.

Roger back in the news DENY DENY DENY;

YANKS trying to sell old seats - since new seats not selling so well;

Jim Rogers- getting ready for dollar crisis;

OPENING SPILL

Feels like something is changing underneath the market as the sellers are starting to take control- not sure if this is the big trend change but it wouldn't be surprising.

SPX -4 and about 5 above big support at 900 area- DJIA -7 and the NAZ -11- and the weakest of the big indexes.

Strongest sectors- metals, drugs, ags, telecom and materials while banks, homies, semis and real estate lag.

SPX - 170+ 322 red;

NYSE 700 net red;

NAZ- 725 net red;

NDX- 20 GREEN;

OEX - 45 GREEN;

VIX - flat at 32.9;

Bought some SRS and looking to add to positions - also looking at SDS as I think the market breaks under the 900 level- although still lots of folks want in - and lots with profits to protect.

RSI (2) levels also coming in of late with most major indexes now at/near 30 with the QQQQ at 15.

METALS MOVING

Early morning and the futures are trading higher as China's economy seems to be picking up - and has Whitney lost her mojo- we should know the answer pretty pretty soon as we watch the financials trade.

ES +2;

NQ +3;

YM +32;

Gold moving on up and now near the $920 area while silver is up to $14.2 and crude is getting ready to touch $60- the $$$$ down at 82.44- and the EURO up to 1.365- the dollar moving down is generally bullish for equities ;

The execs at GM seem to think the stock is toast and check the foreclosures in the Motor city;

Hulbert on the Copppock;

The FED looking for its MOJO;

Jason on 140 characters;

USA and the new Air Force;

Stocks on the Cheap;

The Intellectually Challenged rally;

And right back where we started from;

THE INTERVIEW

SPX/DJIA both closing at/near the lows while the NAZ/NDX opened way down - ramped higher and closed in the middle of the days range. DJIA -156, SPX -20 and NAZ -8- the NDX was much better at +2.

Strongest sectors included junk, biotech, internets, semis and telecom while fins, energy, brokers, real estate and materials lagged.

Market internals crummy in all locations except for the NDX which a little less than flat-

SPX- 1 up for every 4 down;

NYSE- 875 green and 2210 red;

VIX - up a tad at 32.9;

RSI (2) levels as follows:

SPX 38;

NAZ 42

NDX 36

RUT 45

DJIA 36

Markets started to head lower when the Whitney interview hit the airwaves - yes she is not bullish and thinks the fins are very very expensive at these levels.

I added to my DBA position today and am looking to get long more DIG/OIH hopefully tomorrow as we may see some rotation out of financials and tech and into energy- especially if prices remain above $55 on crude.

Here are some commentary from Saut and Cooper.

THE GAP

Markets open lower but are quickly being bought as the NQ futures go flat after being down about 23 near the open.

SPX -16, NAZ -14 and DJIA -113.

Strong sectors-junk, telecom, semis, biotech and drugs while energy, materials, homies, fins and real estate lag.

NYSE- 1800 net losers;

NAZ- 1000 net losers;

SPX - 67 green and 430 red;

NDX - 33 GREEN;

VIX - higher by 3.75% at 33.25;

Down volume 6x the up on the NYSE while its flat on the NAZ;

Gold and crude down a bit while the TNX is trading at 3.217%;

Another shift as the NQ is now leading and erasing its early losses while the SPX/DJIA are lagging led down by the fins and energy.

Big cap tech winners include MSFT AAPL YHOO and NVDA.

NQ also got very oversold this morning as it traded with an RSI (2) reading near 5- so a little rotation to the recent losers. Also note the SMA 200 successful test of the QQQQ near 33.8.

LOWER FUTURES

Equity futures are trading lower this morning as follows:

ES -13;

NQ -20;

YM-100;

Checked out some charts the last few days and lots of interesting stocks/etf's that look quite compelling on a pullback.

DBA owned by Gartman as he says the ags are historically cheap priced in gold - so his trade is long DBA short GLD- I am bullish on gold and long.

In addition - I want to own or add to positions in BAM CNQ ITA and TROW.

Dr. Brett is looking for a break of the recent range before getting aggressively short and I agree;

Trader Joe- on the Dash for Trash;

Tickerville - always with great analysis;

Corey with the extended trade;

NY Times on the next challenge for the banks;

Finally- a bearish turn by some analysts;