Market Observations 06/20/08

Resistance: DJIA 12265 (650DMA); SP500 1360 (750DMA); NAZ 2485 (450DMA); NDX 1950 (300DMA)

Support: DJIA 11850 (850DMA); SP500 1320 (950DMA); NAZ 2385 (700DMA); NDX 1910 (400DMA)

SP500 open 1341, plunge to 1314, close 1318. NDX 1982, gap down to open 1962, plunge to 1920, close 1928.

LAST WEN: What next? Another irrational bounce before we retest this years low NDX 1670 & SP500 1255?

WEN: Perhaps a bounce, but we sense something nasty is about to come out of the woodshed.

Thats 3 for 3, Fitch's, S&P & now Moody's Investors Service stripped bond insurers MBIA Inc. and Ambac Financial Corp. of their Aaa ratings.

Flight to safety? DJIA closed below 11.9K; PG plunged to 63.18 today.

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

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