Market Soapbox 03/21/06

Resistance: DJIA 11275; SP500 1310; Nasdaq 2320; NDX 1710
Support: DJIA 10950; SP500 1270; Nasdaq 2250; NDX 1635

Called into action again. We will be scarce this week, but will endeavour to report.

In our top story tonight, Generalissimo Francisco Franco is STILL dead. PPI -1.4% vs prior +0.3%%, Core PPI +0.3% vs prior +0.4%, YOY Core +1.7%. Inflation is on the rise and interest rates are going up.

Bonds down with the 30 yr yield rising @ 4.73%; 10 yr @ 4.70; 5 yr @ 4.66; 2yr @ 4.71; 6 mo @ 4.80. 2yr was above the 10 year 12/27 - 03/07; 2 above 30 year 02/09 - 03/07.

Recent DJIA History: 26 weeks ago, -270 breaking key support, 25 weeks +148, 24 weeks -281, 23 weeks -6, 22 weeks -77, (5 week loss -486).

21 weeks recovery begins +186, 20 weeks +128, 19 weeks +154, 18 weeks +79, 17 weeks +165, (5 week gain +712). 16 weeks -53, 15 weeks -99, 14 weeks +99, 13 weeks +8. 12 weeks -168, (5 week loss -213).

11 weeks +242 on a broadbased new year buy in, 10 weeks +0, 9 weeks -292, 8 weeks +240, 7 weeks -113. (5 week gain +77). 6 weeks +125, 5 weeks +196, 4 weeks -52. 3 weeks +6. 2 weeks +61, (5 week gain +336. Last week +159.

Mon DJIA -5 in a split tape day. Today, down then up then way down, DJIA -40 bleeding into the close on lower volume with ugly internals. This week DJIA -45, over the last 23 weeks DJIA +540.

All major indexes and sectors clubbed down.DAX & CAC up, FTSE down, Hang Seng & Nikkei 225 down.

Dollar up vs. Euro 1.2163 & vs.Yen 115.77, XAU & gold down @ 553.20, XOI down & crude up @ 60.57, CRB commodities index up @ 322.76.

Looking ahead at potential market influences: Mar 22 EIA Inventory; Mar 23 Initial Claims, Existing Home Sales; Mar 24 Durable Orders, New Home Sales.

The last 90 minutes a hole opened up and sucked the market down into it. A consolidation day, and perhaps more to come.

Keep it tween da ditches, 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, this is The Nattering Naybob and your NOT!!!

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