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

MORNING BIGHT

Equities started the day higher but qucikly sold off as AAPL turned ugly in a hurry- As I type NAZ +2, SPX +.5 and the DJIA +11.

Strongest sectors include energy service, semis, emerging markets, tech and drugs while gaming, metals, banks and homies lag.

NYSE- 460 net losers;

NAZ- 550 net losers;

SPX - slightly better than flat internals;

NDX- 76/24;

Gold down about $13 at $1180;

10 Year note- 2.95%;

Big winners- APOL NIHD GILD NVDA QCOM HAL SLB BHI CMCSA AMGN;

Big losers- AAPL BAC COF JPM AXP SHLD BIDU SNDK WYNN HSIC WCRX PDCO;

Watching AAPL and GS closely and if they turn I suspect the market rallies nicely- Internals good on SPX and NDX - and looking to add to QQQQ near these levels - for a quick flip as the environment remains bearish - just check the sell areas near the 200 and 50 SMA's in recent days- and of course the lower highs and lower lows on the charts -