Market Soapbox 08/17/06

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 @ 5.00%; 10 yr @ 4.87; 5 yr @ 4.81; 2yr @ 4.90; 6 mo @ 5.15.

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.

TUE, a broadbased triple digit bounce, DJIA +132 on low volume with "seemingly pretty" internals.

WEN, followthrough, DJIA +97 on average volume with nice internals.

THU, up 45 early then a sputter, DJIA +8 on average volume with decent internals. This week DJIA +247, since 09/19/05 DJIA +673.

Indexes UP: SOXX DOWN: AMEX, XOI, , XAU, DJTA, DJUA, MID, NYSE.

Sectors UP: Tech, Semis, Brokers, Biotech, Healthcare. DOWN: Gold Bugs, Commodity, Energy, Utilities, Transports, Pharma.

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

Dollar UP vs. Euro 1.2848 & vs. Yen 115.52, XAU -2% & gold DOWN -2% @ 625.3, XOI & crude DOWN -2.3% @ $71.48, CRB commodities index DOWN -1.7% @ 331.69.

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