Market Soapbox 08/11/06

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 @ 5.09%; 10 yr @ 4.97; 5 yr @ 4.91; 2yr @ 4.96; 6 mo @ 5.17.

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. 2 yr below 10 yr 3rd day 08/09.

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.

WEN, an upside pop, then sliding further down the stairs triple digits at one point, DJIA -97 on average volume with ugly internals.

THU, 4 down day streak broken, surging into the close. DJIA +48 on lower volume with decent internals.

FRI, no followthrough in a broadbased downswing, DJIA -36 on average volume with butt ugly internals. This week DJIA -152, since 09/19/05 DJIA +446.

Indexes UP: NONE DOWN: Everything nicely, RUT, SOXX -2.25%, MID, DJTA -1.7%.

Sectors UP: NONE DOWN: Everything BIG, Airlines -4.8%

Overseas: CAC & Hang Seng UP, FTSE, DAX & Nikkei DOWN.

Dollar UP vs. Euro 1.2758 & vs. Yen 115.74, XAU -2.4% & gold DOWN @ 633.5, XOI DOWN & crude UP @ $74.35, CRB commodities index DOWN -1% @ 344.53. Unleaded +3.8%; Natural Gas -3.5%

More market observations and economic reports in todays other posts.

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