THE VIX/SPX

A very ugly day for equities and many folks pining for the days of George W. Bush - as under Obama the SPX has now moved from 805 to 1092- while under dubya from 1350 to 805- interesting- and how quickly we forget.

Anyhow, the SPX down 25 and down 60 points from the recent high of 1150-

The VIX shot up 24% to close at 27.6 and now trades about 43% above the SMA 10- YOWZA - don't see that very often.

RSI 2 level at about 5 on the SPX - so buy signals galore - just like yesterday -

I did put on some SSO earlier and still holding - looking to buy more next week- for now its ugly but I suspect this too will change - just like everyone was hoping for a pullback at much higher levels and now that its here folks are scared silly.

THE QLD

Equities are getting crushed on the heels of a rule limiting proprietary trading by big banks - not sure why PFE is down 3% but it is- Anyhow - SPX -20, NAZ -28 and the DJIA -210.

Strongest sectors- nat gas, internets, bonds and ags while metals, Brazil, gaming, emerging markets, homies and defense lags.

NYSE- 1800 net losers;

NAZ- 1300 net losers;

SPX - 60/440;

NDX- 16 GREEN;

VIX- 21.35 and higher by 14% and about 16% above the SMA 10.

TRIN- 1.76 with down volume about 6x the up.

RSI 2 levels- not quite at the buy point but they are pretty low- also note the SMA 50 on the SPX is near 1115- so right here and now:

SPX 12

COMPQ 16

DJIA 10

NDX 17

XLE 8

XLF 10

Not ready to dip in yet- waiting till the end of the day - and looking at the NDX - so QLD it will be -

THE DOLLAR DISC

Equities have made a nice come back this morning despite the lousy news out of Citi - the SPX +9, NAZ +24 and the DJIA +75.

Strongest sectors include drugs, airlines, reits, emerging markets and small caps while nat gas, gaming, banks, metals and energy lags.

NYSE- 1235 net winners;

NAZ- 800 net winners;

SPX- 390/105 up to down;

NDX- 86/13 up to down;

VIX- down 2% while the VXX is down about 5%;

TRIN- .93 with up volume more than 2x the down;

Gold flat while crude down a bit and the dollar ripping higher again and clearly disconnected from equities for now.

Drug stocks leading the way as folks are thinking a victory in MASS will lead to the end of the health care reform bill- not so sure but that is what its saying for now-

In addition the SPX bounced off the EMA 20 on Friday and it was a pretty good entry point for a short term trade - so holding some SSO and selling some FAX as the yield is probably near the bottom of the intermediate term range.