We head toward the mid-point of the session with the Dow Jones Industrial Average (DJIA) holding a 230-point gain. While that only recoups about a third of what was lost yesterday, it is at least a mildly encouraging sign that buyers are willing to step in after that drubbing.

A look to the sector action shows the buying is fairly widespread. The iShares Treasury Bond (TLT) is holding near breakeven while the US Oil Fund (USO) and Oil Service HOLDRS (OIH) post a loss. The rest of the pack is higher. The SPDR Homebuilders (XHB), Regional Bank HOLDRS (RKH), PowerShares Clean Energy ETF (PBW), and Broker/Dealer Index (XBD) are among the strongest groups.

Chart Courtesy of Thomson Financial

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As touched on last night, I believe the daily charts below are worth watching. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) are currently showing a rejection at the October lows. A failure here would set up a test of the lows from November 20 and 21.

Charts Courtesy of Thomson Financial