MARKET TIDBITS

Equities are trading higher along with bonds gold and the EURO- interesting day as the risk trade looks to be on -

The SPX is trading about 5 points below the magic 1130 level which everyone is looking at as the top of the range in this range bound market. EWA/EWC out performing and up about 1% for the day.

Strong sectors- metals, retail, semis, drugs and tech while nat gas, banks, brokers, homies and gaming lags.

VIX- flat near the 21 level;

Gold has broken out to $1,275 and is at all time highs;

Ten year rate moving down and yielding a big 2.68%- TLT +.6%;

RSI 2 levels at/near 97 on most major indexes - so with the over bought levels and the top of the range in the here and now -and with financials and energy lagging - probably time to take stuff off or sell some calls / buy some puts -

THE CLOSE

Equities finished the day near the highs with the SPX +12 at 1122 and the NAZ +43 at 2286.

Some good news late in the day as MSFT rose on the heels of news of a debt issuance and a stock buyback or a dividend increase- the stocks was +5.74% on the day and was strong out of the gate.

NDX with 92/8 on the internals;

SPX 426/73;

RUT 1648/217;

NYSE 1414 net winners;

VIX closed at 21.21 and about 10% below the SMA 10;

RSI 2 levels on most major indexes way overbought at 95+;

Interesting news on the bond front as rates on the 10 year dipped to 2.741% and the TLT was higher by .66% at 103.

Bottom line equities way overbought but have now moved above all the significant moving averages - so looking for a little pull back but also looking for it to be a buying opportunity. Of course the trading range looks to still be 1040/1130- and we are now testing the upper end of that range- double dip anyone?