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Bond YIELDS lower

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Bonds are seeing further buying this morning and I've got red on all three major YIELDS we follow on a daily basis. The 30-year YIELD ($TYX.X) has dipped below the 5.50% and has violated all of its recent low YIELDS dating back to July 20th. This has me now thinking (based on recent observations) that the S&P 500 Index should test recent lows in the 1,170 area. Should bond YIELDS continue to fall as buyers come into that market, I do believe that the broader market averages will continue to suffer.

Stock futures weak

Stock futures are lower this morning with S&P futures trading down 2 points, NASDAQ futures are off 5 points and Dow futures are off 13 points. Fair value for the S&P 500 today is $3.62. HL Camp & Company has their computer set for program buying at $5.08 and set for programs selling at $5.08. Fair value for the NASDAQ-100 today is $8.16.

Initials jobless claims

Initial jobless claims came in at 385K, which is slightly higher than economists had expected. Initial claims fell 23K to 346K in the week ending July 28th, marking a 3 week decline of 103K. Continued claims for unemployment fell 80K in the week of July 21st showing a significant drop of 107K. The 4-week average for initial jobless claims is 395K and 357K for continued claims.

Jeff Bailey
Senior Market Technician

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