12-10-2006 Market Direction

Market Direction:
1. 10 year Treasure yield: 4.552%, it has been down since May, went up last week, still not out down-trend Channel yet.

2. Index Options: CPC 0.78---Bullish ISSE 148---neutral OEX

3. VIX : 12.07

4. Currency: USD at 83.32 was up for a week since the bottom

5. Commodities;GOLD: 145 down for a week, may down next week OIL: $62, consolidate for a week, down last Friday . OIH up for a few weeks, consolidate last week

6. Money Flow: Lending/ borrowing : 9.50 ---bullish7.

Charts Reading:  don't think market will go down much before New Year.
SPX: bullish: stop at 1400 and 1390
COMP: Neutral –bullish stop at 2400, and 2375
Indu: Netural –Bearish

Next Tuesday : Fed Statement

Next Friday: CPI