MORE MID-DAY NOTES…POSITIVE DIVERGENCES PLAY OUT

With the DOW down 190, we noticed the NASDAQ-types coming on and thought a positive divergence was playing out. Anything can happen within the crazy days we have been seeing but the positive divergence is taking hold. The DOW is now only down 90 and the NASDAQ is up nicely with the RUSSELL (for a change) leading with a 1% gain. We suspect the market is putting in another “A” low today. After all, the DOW dropped 1600 points in the past 3+ days. THE NASDAQ/NDX/SEMIS continue to be the strongest areas. Of course, it is not even 1 pm but so far, so good.