Every time markets are hit, internals deteriorate…simple as that. More names, more leading names are breaking the 50 day. These are the names that held up best.

Also…CAT up $7…finishes down $10. MMM down $15. LMT down over $20. GOOGL down $50 on a beat. We try to take out all opinion and just look at the facts in front of us. Facts are more and more blow-ups. Facts are major indices rolling over after visiting the declining 50 day averages. Facts are fewer and fewer names working. More and more names rolling over. Blow ups and sharp reversals do not happen in bull markets. Not like this.

Still plenty of earnings to come out.

BA reports absolute blow-out numbers and is only up $5 after being down more yesterday. BA has been the most important name to the Dow move so must be watched.

Other gaps (but nothing huge) are NSC, TWTR, STM, IR…to the downside…TER, EW, DLB, WYNN.

SEMIS will be up on the open as TXN up $4, CREE up $3…but the SOX is down to the 200 day average with the SMH below it.

The good news remains MAJOR LONGER-TERM SUPPORT has not been broken. You know our thoughts if it does break.

NDX futures basically flat….S&P down a wee bit.

ENERGY/OILS remain strongest areas.

A few COMMODITY names were acting better and then FCX reports and crashes. Says a lot.

The 10 year yield trading above 3% this morning.