Financials: Bonds are currently unchanged at 12’10, the 10 Yr. Notes 4 lower, the 5 Yr. Notes 6 lower and the 2 Yr. Notes unchanged at 108’29. The Dec. Eurodollar is 3 lower at 99.070. We remain short the 2 Yr. Notes and the Dec. Eurodollar. As for the Bonds, as mentioned this week I want to be a buyer below the 120’15 level with a protective sell stop at 119’13 for a short term trade. Yesterday the market broke sharply off of its highs based on supply fears and the fact that money has moved out of currency into precious metals over the last few days (am I stating the obvious?).

S&P's: June S&P’s are currently 2.00 higher at 891.00. Yesterday the market came close to testing the 875.00 support level with a low of 877.75. Near term support remains at 875.00 and near term resistance at 914.00. Treat as a trading market between support and resistance.