Market Soapbox 07/17/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1210, Nasdaq 2050; NDX 1475

YIELD CURVE INVERSION: Bonds UP with the 30 yr yield falling @ 5.10%; 10 yr @ 5.06; 5 yr @ 5.04; 2yr @ 5.11; 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 - ?; 6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo above 30yr 06/13 - ?

MON, a choppy split tape day DJIA +8 on lower volume with ugly internals. This week DJIA +8, since 09/19/05 DJIA +105.

Indexes UP: DJUA, NDX. DOWN: DJTA, NYSE, RUT, MID, SOX, XAU & XOI all punked.

Sectors UP: Airlines, Telecom, Tech, Utilities, Banking. DOWN: Cyclical, Commodity, Oil, Energy, Gold Bugs, Biotech.

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

Dollar UP BIG vs. Euro 1.2573 & vs. Yen 116.10, XAU & gold DOWN 2.4%@ 651.9, XOI -3.2% & crude DOWN 2.3% @ 76.91, CRB commodities index DOWN 2.7% @ 347.31

Market observations and economic news in todays other posts.