Market Soapbox 07/26/06

Resistance: DJIA 11775; SP500 1335; Nasdaq 2380; NDX 1750
Support: DJIA 10650, SP500 1220, Nasdaq 2000; NDX 1450

YIELD CURVE INVERSION: Bonds UP with the 30 yr yield falling @ 5.09%; 10 yr @ 5.03; 5 yr @ 4.98; 2yr @ 5.07; 6 mo @ 5.21. 2yr below 30yr for 5th day.

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 - 07/20; 6mo above 10yr 06/02 -?; 2yr above 10yr 06/08 - ? 6mo above 30yr 06/13 - ?

MON, a triple digit bounce DJIA +183 on lower but average volume with nice internals.

TUE, DJIA +53 in a choppy day with late followthough on lower volume and midlin internals.

WEN, DJIA FLAT in a choppy sideways treading water kinda day, on lower volume with fair internals. Select tech issues and energy led the way. This week DJIA +236, since 09/19/05 DJIA +462.

Indexes UP: XAU, XOI, DJUA DOWN: DJTA -2.5%, RUT

Sectors UP: Oil, Natural Gas, Commodity, Telecom, Biotech. DOWN: Transports, Brokers, Healthcare, Cyclical.

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

Dollar DOWN vs. Euro 1.2701 & vs. Yen 116.3, XAU +2.7% & gold UP @ 621.9, XOI +2% & crude UP @ $73.94, CRB commodities index UP @ 341.95

Market Observations and economic reports in todays other post.

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