Market Soapbox 05/30/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10850; SP500 1250; Nasdaq 2150; NDX 1550

In our top story tonight, Generalissimo Francisco Franco is STILL dead. May Consumer Confidence fell to 103.2 vs prior 109.8. A 6% drop, the largest since Katrina.
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WalMart sales up, but at low end of guidance. Consumer confidence and the Beast from Bentonville pointed the finger at rising gasoline prices, raising concern of a consumer pullback. GM downgraded by Deutsche Bank, stock punished 7%. No surprises here.

Fed Head Moskow, told CNBC that inflation at about 2% (ha, ha, ha) is near the upper end of the Fed's comfort zone. I think he omitted the 1 in front of the 2, as in 12%.

Bonds DOWN with the 30 yr yield rising @ 5.18%; 10 yr @ 5.07; 5 yr @ 4.97; 2yr @ 4.96`; 6 mo @ 5.02. 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29.

TUE, A broadbased triple digit pounding with AUTHORITY and EXTREME VOLATILITY VIX +23%. DJIA -184 on slightly higher volume with abysmal internals. This week DJIA -184, since 09/19/05 DJIA +453.

Indexes UP: None DOWN: All BIG

Sectors UP: None DOWN: All BIG

Overseas: DAX , CAC, FTSE ALL -2.5%, Hang Seng & Nikkei 225 DOWN.

Dollar DOWN BIG vs. Euro 1.2887 & vs. Yen 111.74, XAU DOWN & gold UP @ 657.10, XOI DOWN & crude UP @ 72.03, CRB commodities index UP @ 347.88.

This is shaping up to be the worst month in almost 2 years. Investors had three days to think about the last two weeks and so, the 2 day bounce turned into a dead cat bounce.

The market tanked into the close and we are back at critical support levels. Should the market slice through this level in short order, with action and volatility like today's, look out below, because the bottom is not even in sight. We are OFF tomorrow, back at ya Thurs.

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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