Market Soapbox 07/27/06

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

YIELD CURVE INVERSION: Bonds DOWN with the 30 yr yield rising @ 5.10%; 10 yr @ 5.08; 5 yr @ 4.98; 2yr @ 5.05; 6 mo @ 5.22. 2yr below 30yr for 6th 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 -1 in a choppy sideways treading water kinda day, on lower volume with fair internals. Select tech issues and energy led the way.

THU, DJIA a deceiving -2 in a broadbased market drowning on average volume with very ugly internals. This week DJIA +233, since 09/19/05 DJIA +459.

Indexes UP: SOXX. DOWN: DJTA, MID, XAU, RUT, NAZ, NDX

Sectors UP: Telecom, Brokers. DOWN: Everything else slapped silly, Healthcare -5.7%.

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

Dollar DOWN vs. Euro 1.2740 & vs. Yen 114.63, XAU DOWN & gold UP 1.7% @ 632.5, XOI DOWN & crude UP @ $74.54, CRB commodities index UP @ 344.55

Market observations and economic reports in todays other posts.

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