Market Soapbox 08/03/06

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 @ 5.04%; 10 yr @ 4.95; 5 yr @ 4.90; 2yr @ 4.98; 6 mo @ 5.10.

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.

2yr above 10yr 06/08 - 7/26; 6mo & 2yr above 30yr 06/13 - 07/20; 6mo above 10yr 06/02 -?; 6mo above 30yr 06/13 - ? 2 yr went above 10yr today 08/03.

MON, a treading water day, fading into the close, DJIA -34 on lower volume with midlin internals.

TUE, rolling down a step in an ugly way, DJIA -60 on average volume with butt ugly internals.

WEN, convictionless bounce DJIA +74 on lower volume with nice internals.

THU, some followthrough, DJIA +42 on lower but average volume with pretty internals. This week DJIA +22, since 09/19/05 DJIA +600.

Indexes UP: DJTA, NDX, SOXX, RUT DOWN: OEX, XOI, XAU, DJUA

Sectors UP: Transports, Biotech, Tech, Brokers, Cyclical DOWN: Gold Bugs, Natural Gas, Utilities, Commodity.

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

Dollar DOWN vs. Euro 1.2850 & UP vs. Yen 114.23, XAU -1.8% & gold -1% @ 644.9, XOI & crude DOWN @ $75.46, CRB commodities index DOWN 1% @ 349.93. Natural Gas: -6.5%

Market observations and economic reports in todays other posts.

Comments