LOWER HIGHS CONTINUING

Equities closed the day higher after opening way down and sinking near the open- SPX +12, NAZ +24 and the DJIA +75.

Strongest sectors included gaming, homies, oil service, emerging markets and metals while semis, drugs, banks and brokers lagged.

NYSE- 1860 net winners;

NAZ- 530 net winners;

NDX- 67/31;

SPX 430/67;

RUT- 1375/512;

Gold- higher by $10 at 1192;

Crude- up 90 cents at $77;

Feels like here we go again as the SPX makes another run at the SMA 50 which is at about 1088- and I suspect more selling as that has been the money trade- look at the chart - its lower highs and lower lows and that area looks like as good a place as there is to sell-

VIX closed down about 8% but hardly in over sold area while RSI 2 levels on major indexes also up but hardly over done near the 70 level-

And the 10 year note refuses to move higher as it closed at 2.93%- fear of losing money