Market Soapbox 07/11/06

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

Multiple buildings and commuter trains were bombed in India's Mumbai Financial District killing over 100.

The White House trimmed its budget deficit estimates by 30% to $296B. Energy YTD +13.8%. Bond market rescue continues to keep interest rates lower.

YIELD CURVE INVERSION: Bonds UP with the 30 yr yield falling @ 5.14%; 10 yr @ 5.10; 5 yr @ 5.07; 2yr @ 5.15; 6 mo @ 5.25.

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 & 2yr above 30yr 06/13 - 06/30.

6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo above 30yr 06/13 - ?

MON, DJIA +13, a split tape day on lower volume with midlin internals.

TUE, DJIA +31 on higher but average volume with decent internals. This week DJIA +44, since 09/19/05 DJIA +483.

Indexes UP: XOI, RUT, MID, NDX DOWN: DJTA.

Sectors UP: Everything cept... DOWN: Airlines, Telecom.

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

Dollar UP vs. Euro 1.2745 & vs. Yen 114.33, XAU & gold UP +2.7% @ 643.1, XOI +1.3% & crude UP @ 74.16, CRB commodities index UP @ 350.28

The market was down big, then short covering and a large late day surge saved the market. The RUT bounced off 700 and the QQQQ's jumped on higher volume into the close.

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