Market Soapbox 08/14/06

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 @ 5.11%; 10 yr @ 5.00; 5 yr @ 4.94; 2yr @ 5.01; 6 mo @ 5.22.

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.

2yr above 10yr 08/03 - ?; 6mo above 10yr 06/02 -?; 6mo above 30yr 06/13 - ?

MON, early triple digit bounce, then a slip, bleeding into the close. DJIA +10 on low volume with deceiving internals. This week DJIA +10, since 09/19/05 DJIA +436.

Indexes UP: SOXX, NDX, RUT, DJTA DOWN: XAU, XOI.

Sectors UP: Tech, Transports DOWN: Commodity, Gold Bugs, Energy

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

Dollar UP vs. Euro 1.2729 & vs. Yen 116.69, XAU -1.6% & gold DOWN @ 639.3, XOI -1.75% & crude DOWN -1.5% @ $74.85, CRB commodities index DOWN -1.6% @ 338.76.

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