Market Soapbox 12/27/07

THU, triple digit slam, DJIA -192 on lower volume with horrible internals. All DOWN BIG.

Bonds up BIG 10 yr yield -10bps 4.19, $ down BIG vs 1.4613E & down vs 113.685y, WTI up $96.72, gold up $831.8

Fri & all week: "Until proven otherwise, this tech led rally smells like a head fake for month, quarter and year end window dressing."

Today, a malodorous hint, NDX gap down 2136 to 2129, plunge to 2104, close 2106. SP500 gap down 1498 to 1495, plunge to 1476.

NDX (2140) & SP500 (1500) 150DMA bumped into resistance and fell. DJIA resting on 200DMA, NDX on 50DMA.

Fri: New home sales, Mon: Existing home sales, Wen: Construction Spending. Cannot rule out another head fake to 2171 NDX.

We sense Jan 2nd or 3rd, to be a major inflection point as vacations end and New Year portfolio instructions get executed.

With late Jan reporting, we sense NDX 300 DMA 1910 & SP500 1360 coming in the New Year.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

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