Financials: Sept. Bonds are currently 19 higher at 115’30, the 10 Yr. Notes 13 higher, the 5 Yr. Notes 7 higher and the 2 Yr. Notes 1 higher at 108’12. The Dec. Eurodollar is 3 higher at 99.060. We remain short both the Sept. 2 Yr. Notes and the Dec. Eurodollar. Resistance in Sept. Bonds remains at 117’15. I recommend trading the Bonds from the short side on a rally to resistance. Support for Sept. Bonds remains at 114’24.
S&P's: June S&P’s are currently 8.25 lower at 934.75. Yesterday we once again tried the short side of the market in the 938.50 level with a protective buy stop at 951.50. If you remain short continue to use this buy stop and be prepared to lower it to the 946.00 level if the market trades below the 932.00 level or take the short term profit. My near term downside objective is the 924.00 level. If the markets trades down to this level either take profits or lower your buy stop to the 932.00 level.