Market Soapbox 06/07/07

THU, deterioration, DJIA -199 on above average volume with brutal internals. VIX volatility rocked, All DOWN BIG.

Bonds slammed 10 yr yield +15bps 5.12, $ down vs 120.945y & up vs 1.3428E, gold down 1.3% $665.2, WTI crude up 1.5% $66.93

Conspicuous consumption continues for The Have's:

YTD retail same store sales +2.2% vs 06 +4.1%. May: Costco +7%; Kohl's +10%; Nordstrom +6.3%; Needless Markups +6.6%; Suck's Filth Ave. +38%.

The Have Not's are keeping wallet in pocket: Macy's -3.3%; Wal Mart +1.1%; JC Penney -2%.

3rd straight broadbased consolidation, back to back triple digit down days.

DJIA up 35 for 50; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 42 for 61.

Over the last 3 weeks, some magic numbers with strong resistance... SOXX 500-505. Magnets RUT 830, NDX 1905, MID 900 and SP500 1505 all breeched to the downside.

BIG RED FLAGS: SP500, OEX, MID & AMEX fell through 25 DMA, DJ Comp shattered 50 DMA 4490, sinking to 4462.

RUT fell off 25 DMA to rest on 50 DMA 825. DJTA fell & bounced at 5044, just above 75DMA 5032. DJUA fell through 75 DMA in a BIG WAY.

Yesterday: "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."

SP500 sits on 50 DMA after plunging to close at 1490. If this doesn't hold, 100 DMA 1460 awaits.

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

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