Market Soapbox 03/07/07

WEN, a wavy day, DJIA -15 on average volume with midlin internals. All DOWN cept, DJTA, MID.

Bonds up 10yr yield -3 bps 4.49, $ down vs 116.055y & vs 1.3177E, WTI crude up 2% $61.92, gold up 1% $652.30

10 year bond below 4.5%, Commodities, Transports & Cyclicals were up.

The Fed Beige Book noted several districts showed "some slowing;" almost all districts reported that "housing markets remained weak".

Yesterday we sided with more bounce to the upside perhaps to the 1410 range.

Today, more upside bounce to SP500 1401, then a rapid reversal in the last 45 minutes closing at 1391.

Tomorrow, either a drop then pop continuing to around 1410 or an early breakdown below 1380 and perhaps something nasty comes out of the woodshed a wee bit early?

We lean towards something nasty comes out of the woodshed in any case....

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