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Barry Bonds hit his 52nd and 53rd homerun of the season, and traders continue to by U.S. Bonds.

The latest data from Trim Tabs shows that investors withdrew $2.6 billion from stock funds and put $1 billion into bond funds. Not all of those inflows necessarily go into government bonds, but it still shows that investors prefer the safety of bonds.

5-Year Treasury Note Yield Daily Chart

The buying in 5-year notes has pushed the yield down to 44.17 (4.417%). That's a 1.33 drop in yield, and the 5-year is now testing support at 44.14, and a drop below 43.53 would put the yield at a level not seen since March.

S&P 100 Daily Chart

With time running out in this trading session, it looks like the S&P 100 is going to close below 598 for the first time since April. This 61.8% retracement level of the April to May gains has supported the S&P 100 over the past month. With the chance of a late-day rally fading, it looks like the Dow and Russell 2000 will be the only indices remaining above their 61.8% retracement levels.

Jeffrey Canavan
Assistant Analyst
www.premierinvestor.net

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