Market Observations 06/06/08

Resistance: DJIA 12750 (500DMA); SP500 1394 (150DMA); NAZ 2530 (300DMA); NDX 2055

Support: DJIA 12100 (700DMA); SP500 1361 (100DMA); NAZ 2480 (450DMA); NDX 1990

SP500 1404, gap down to open 1400, collapse to close 1359. NDX 2055 gap down to open 2036, pop to 2039, collapse to close 1990.

THU: Commodities slapped, dollar rising? bonds falling? Rising rates, small caps rising?

SAT: We repeat, watch support at NDX 1945 & SP500 1375, and resistance at NDX 2050 & SP500 1440

MON: NDX 2040 tested Friday, watch SP500 1375 support.

TUE: SP500 1370 tested today as name brands are popping up like weeds.

WEN: NDX 2035 tested again today. Range bound, non farms or name brand surprise could break it.

THU: Today's irrational upsurge tested NDX 2055 & SP500 1405 again. Will $1 Trillion in bond reratings weigh in?

Non Farms, $10 oil surge to $138 & Ambac, MBIA downgrade pulled SP500 back to 1370.

The fall from NDX 2050 & SP500 1405 was hard. The question is; running counter to the SP500; did the MID, RUT & NDX hit near term peaks this week?

If they did, its going to be a very nasty ride down from here.

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

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