Financials: Bonds are currently 11 higher at 119’21, the 10 Yr. Notes 9 higher, the 5 Yr. Notes 6 higher and the 2 Yr. Notes 1 higher at 108’29. The Dec. Eurodollar is 2 higher at 99.065. We remain short the 2 Yr. Notes and the Dec. Eurodollar. I am somewhat encouraged with these positions given the sharp break in the interest rate futures over the last three trading days. As for Bond futures we were stopped out of a recent long position in June Bonds from below the 120’15 level when the market traded below the 119’13 level on Friday.

S&P's: June S7P’s are currently 5.00 lower at 880.00. Near term support remains in the 875.00 area and near term resistance at 914.00. If the 875.00 level is penetrated the next level of support will be in the low 860’s, an area where I am willing to try the long side of the market. If the market trades higher between 909.00 and 914.00 I will be willing to trade from the short side once again.