Market Soapbox 06/22/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1500

Economic news and market observations in todays other post.

MAJOR YIELD CURVE INVERSION: Bonds DOWN 7th straight session with the 30 yr yield rising @ 5.24%; 10 yr @ 5.21; 5 yr @ 5.19; 2yr @ 5.23; 6 mo @ 5.23.

Recent Inversions: 2yr above 10 yr 12/27 - 03/07 & 03/20 - 3/29. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29. 6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo & 2yr above 30yr 06/13 - ?

MON, DJIA -73 on lower volume, bleeding into the close with ugly internals.

TUE, a thinly traded split tape day with a small bounce then a fade, DJIA +33 with midlin internals.

WEN, a thinly traded triple digit broadbased bounce much like 06/14 & 06/15, with pretty but deceiving internals (more later) DJIA + 105.

THU, no followthough, a choppy day on lower volume with ugly internals, DJIA -60. This week DJIA +5, since 09/19/05 DJIA +379.

Indexes UP: XOI DOWN: Everything else, SOX, NDX PUNKED.

Sectors UP: Airlines, Oil, Tobacco DOWN: Everything else, Tech POUNDED.

Overseas: FTSE , DAX , CAC , Hang Seng & Nikkei 225 +3.4% ALL UP.

Dollar UP vs. Euro 1.2661 & Yen 114.65, XAU & gold DOWN @ 585.4, XOI & crude UP @ 70.84, CRB commodities index DOWN @ 336.16

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