Market Soapbox 08/08/06

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 @ 5.02%; 10 yr @ 4.92; 5 yr @ 4.84; 2yr @ 4.90; 6 mo @ 5.19.

Recent Inversions: 2yr above 10 yr 12/27 - 03/07; 03/20 - 3/29; 06/08 - 07/26. 2yr above 30 yr 02/09 - 03/07 & 03/21 - 3/29; 6mo & 2yr above 30yr 06/13 - 07/20.

2yr above 10yr 08/03 - ?; 6mo above 10yr 06/02 -?; 6mo above 30yr 06/13 - ?

MON, DJIA -21 on lower volume with ugly internals.

TUE, wavy gravy awaiting FOMC decision, DJIA -46 on higher but average volume with ugly internals. This week DJIA -67, since 09/19/05 DJIA +531.

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

Sectors UP: Utilities DOWN: Everything else slapped down.

Overseas: FTSE DOWN, CAC, DAX, Hang Seng & Nikkei +2.2% ALL UP.

Dollar DOWN vs. Euro 1.2896 & vs. Yen 114.91, XAU -1% & gold DOWN @ 645.7, XOI UP & crude DOWN @ $76.31, CRB commodities index DOWN @ 350.73. Natural Gas +3.6%

Market observations and economic reports in todays other posts.

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