Market Soapbox 09/21/05 UPDATED

Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535

Today's SOOHEY PIG PIG award goes to the bond market for even thinking that Uncle Al will pause because of Katrina or any other reason, get real, you are being punished for irrational exuberance.

Monday a down day with AUTHORITY DJIA -94, Tues down with AUTHORITY DJIA -76, Today, a 2nd folow through day down with AUTHORITY DJIA -103 on higher volume. This week & last DJIA -311.

Gold Bugs, Transports, XAU, XOI, Natural Gas, Oil, Oil Services, Energy, Commodities up nicely, everything else got pounded senseless in a broad based sell off.

Then thrown overboard into a red tide with extremely ugly internals (see advance decline share volume and 52 week hi low ratios).

European & Asian markets down. Dollar up vs. Yen & Euro , XAU & gold up, XOI & oil up, commodities & bonds up. Contra trend: Amex XAX went up while most indices were down.

Bond prices up +17 ticks with the 10 year yield decreasing to 4.17%, the gap between 5 & 10 year notes stands at 19 basis points. The 30 year jumped 34 ticks dropping its yield to 4.46, the gap between 10 & 30 now stands at 29 basis points.

EIA's weekly inventory report indicated gasoline and distillate supplies unexpectedly rose while crude oil inventories unexpectedly fell, thats the good news.

Oil up 1% @ 66.90 on Rita fears, Rita upgraded to Category 4, Houston Galveston area is being evacuated, oil rigs are shutting down.

DJIA plunged below 10400 today and has broken all major DMA's through 180 in the last 2 days. SP500, RUT, & MID crashed through 30, 50, 60 DMA yesterday, all are resting on 90 DMA late today.

SOX crashed 60 DMA today, NDX fell off of 60 DMA today, Nasdaq crashed through 90 DMA today, all on high volume.

There is liquidation of equities in a rush to "safety" in bonds the last 2 days,
I expect more downside as the indices have fallen through near term support and will test their 90 DMA's shortly.

DJIA @ 10378, Nasdaq @ 2106 (approaching 11 week low), SP500 @ 1210. If you have not already, get those Bermuda shorts and a parachute ready.

Should the SP crack 1210 & 1200, DJIA 10250 & Nasdaq 2050 things could get very ugly and there might be alot of people heading for the exits at the same time.

We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.

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