GONE SHOOTING (DIGITAL)

MORE DIPPING

Equities are trading lower on the heels of an upward move in the dollar and a bearish report on crude. SPX +5, NAZ -5 and DJIA -40.

Strongest sectors- internets, drugs, ags, semis and defense while metals, energy, homies, gaming and brokers lag.

NYSE- 1400 net losers;

NAZ- 900 net losers;

SPX- 120 GREEN;

NDX- 35 GREEN;

VIX- up 5% at 24.15 and about 7% under the SMA 10;

TRIN- 1.00 - with down volume about 3x the up-

RSI 2 levels as follows:

SPX -52

DJIA -56

NAZ- 67

NDX- 84

RUT -41

XLE 14

XLF 54

XLK 70

EWA 47

EWC 39

EEM 39

EWZ 20

As usual I suspect the market gets bought later in the day as that has been the usual pattern- doubtful we get back to the flat line but close before the close will probably be my bet.

NOON SWOON

Equities are higher but well off their best levels as the dollar all of a sudden popped higher - rumors of a financial transaction tax causing the sell off.

Strongest sectors- homies, gaming, airlines, trannies and brokers while retail, Brazil, energy, drugs and internets lag.

NYSE- 450 net green;

NAZ- 600 net green;

SPX- 285 GREEN;

NDX- 55 GREEN;

VIX- higher by 3% at 23.5.

TRIN- .8 with up volume almost double the down.

CNBC asking the shrewd question of whether the rally is for real- lets see the SPX is up 65% from its 666 low last March- so not sure which world these folks are in.

Also as mentioned this morning - the RSI 2 on the SPX at 99 and now down to 98 after this hard sell down - obviously a bigger sell off here is likely in light of the recent moves - especially with the dollar support levels near 75.

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.

THE HIGHS

Equities are trading near their highs for the day and close at/near their is probably on tap unless the dollar shoots higher which isn't likely.

Strongest sectors- gaming, metals, reits, real estate and emerging markets while nat gas, bonds, biotech, internets and airlines lag.

NYSE- 2010 net winners;

NAZ- 1000 net winners;

SPX- 468 green;

NDX- 85 green;

VIX- down 2.6% at 23.56 and still way above the lows of 20 from a few weeks ago.

TRIN- .36 with up volume 15x the down and light volume overall.

LVS WYNN BHP AXP RIMM CNQ FCX BAC COF BHI DELL WFC NOV WFC FDX the big winners while KFT GILD AMGN LINTA WCRX GRMN BIIB APOL VRSN SBUX HANS the biggest losers.

Looking for higher prices before the close and tomorrow - TT turnaround Tuesday - markets also very over bought and getting near the recent highs- RSI 2 of 98 on the SPX.