Financials: Bonds are currently 25 lower at 115’15, the 10 Yr. Notes 15 lower, the 5 Yr. Notes 6 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are presently 3 lower at 99.065. We remain short the 2 Yr. Notes and the Dec. Eurodollars. This morning’s weekly jobs report showed a decline in Jobless Claims of 4,000 versus expectations of a decline of 3,000. Continuing claims were down 15,000 to 6,735,000. No major surprises. Support and resistance for Sept. Bonds continue at 114’24 to 117’15.
S&P's: June S&P’s are currently 3.00 higher at 934.75. Yesterday the market traded slightly below my near term downside objective of the 924.00 level. Once this occurred the market also rallied back up through my recommended buy stop of 932.00, taking us out of our short position. For the short term support continues in the 924.00 area and resistance at 942.00. I still prefer the short side of the market on rallies.