MIDDAY SIGNALS

Equity markets are trading lower but hitting buy signals if you follow the RSI 2 trading strategy - basically says buy when RSI 2 is at/under 10 when the underlying is in an uptrend - above the SMA 200- that is what we have on most major market indexes today.

Another signal generally worth following is buy the SPX when the VIX is more than 10% above its SMA 10- well that one is no where near hitting as the VIX is at the SMA 10.

So I will probably be buying some EWA SSO DIG - as we get a nice rally next week as the holiday kicks in.

EARLY CHECK

Equity futures getting hammered again this morning after the SPX lost 15 points yesterday to close at 1095 with an RSI 2 reading of 15.

One of the reasons equities are down is the rip in the dollar which is up about .7% almost hitting the 76 level.

Gold is down about $7 at $1138 while silver is down about 2% at $18.2.

The VIX not giving much of a buy signal as it is still trading under the SMA 10 at 22.63.

BESPOKE with some GOLD observations;

And another business news choice for those in the NY metro area- suburbs not NYC;

Andrew Sullivan on the Palin book;

MORNING FACTS

Markets are lower this morning but not so bad in light of the big run yesterday - and everyoneknew today was Turnaround Tuesday- SPX -5, NAZ -9 and the DJIA -21.

The dollar is ripping higher this morning as it is up close to 1% at 75.6 after falling nicely yesterday.

Strongest sectors- junk, banks and real estate while retail, metals, oil service, internets and biotech lag.

NYSE- 1060 net losers;

NAZ- 1000 net losers;

SPX- 120 green;

NDX- 22 green;

VIX- 23.06 and about 4% below the SMA 10.

TRIN- 1.13 with down volume about 2x the up.

Market internals are far worse than the indexes indicate so a bigger dip is probably in store later in the day- 3/4 of the key stocks I follow are red - so my guess is lower later- RSI 2 readings near 60 on the SPX so no short term buy or sell signals - that was yesterday- with a sell.