Market Soapbox 07/28/06

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

YIELD CURVE INVERSION: Bonds UP BIG with the 30 yr yield falling @ 5.07%; 10 yr @ 4.98; 5 yr @ 4.92; 2yr @ 4.97; 6 mo @ 5.14.

Yield Curve Reversion: 2yr below 30yr for 7th day. 2yr below 10yr 1st 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.

FRI, DJIA +119, a broadbased triple digit bounce on lower volume with pretty internals. This week DJIA +352, since 09/19/05 DJIA +578.

Indexes UP: Everything BIG DOWN: None Sectors UP: Everything BIG cept Oil. DOWN: Healthcare -2.3%.

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

Dollar DOWN BIG vs. Euro 1.2798 & vs. Yen 113.95, XAU +3.2% & gold UP @ 634.8, XOI UP & crude -1.75% @ $73.24, CRB commodities index DOWN @ 343.83

Market observations and economic reports in todays other posts.

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