Market Soapbox 05/21/07

MON, split tape, DJIA -14 on average volume with nice internals. All UP cept DJTA, SOXX.

Bonds up, 10 yr yield -2 bps 4.78, $ up vs 1.3464E & up vs 121.465Y, WTI crude up 2% $66.27, gold up $663.8

Thursday: "a complex topping process or a lengthy sideways consolidation for the next run up?"

Friday: "We sense another up day to push past 1527.4 all time high, but how much gas is left in the tank and what will happen then?"

"A difficult housing market"... #2 home improvement retailer Lowes cutting 07 projections after Q1 missed -12% profit on higher costs & a 6.3% decline in same store sales,

DJIA up 30 for 37; 45 record closes since Oct.; 23 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 37 for 49.

Over the last 3 weeks, some magic numbers with strong resistance... RUT 830, SOXX 500-505. They still stand...

NAZ & RUT coming off consecutive weekly declines. YTD DJIA, SP500 & NAZ outperforming the RUT.

SP500 hit 1529.87 intraday but fell from 3PM on, closing at 1525, below all time record.

This market is looking "thin", Fee-Fi-Fo-Fum we smell Tues or Wen con-sol-id-ation... initial retest of 1515 area.

Often wrong, but never in doubt, this is the Nattering Naybob and your not!

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