Market Soapbox 06/06/07

WEN, triple digit followthrough, DJIA -130 on below average volume with brutal internals. All DOWN BIG.

Bonds up 10yr yield -1 bps 4.97, $ down vs 121.055y & up vs 1.3506E, WTI crude up $65.96, gold down $674.6

2nd straight broadbased consolidation DJIA up 35 for 49; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 42 for 60.

Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. it still stands...

Semis have falled from 510 and repelled from 495 three trading days ago. Magnets RUT 830, NDX 1905, MID 900 all in clear sight again.

Last week, "retest of 1520-1525 to come". Yesterday: "FYI Max pain is at 1515-1520."

Full options unwind in progress as SP500 plunged to MAX PAIN through 15DMA to hit 25DMA 1514 intraday.

If support holds at this level, we expect a retest of 1540 on short covering next week.

If not 50 DMA at 1490 is waiting below. Often wrong, but never in doubt, this is the Nattering Naybob and your not!

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