4/29/2009 4:11 PM

The market held in the OVN session and did trade back to the preceding day’s auction price minus a tick. Resistance held and the market drifted lower into the auction. It was an OK auction. The Bonds sold, but most likely are still in street hands. The FOMC announcement broke the financials and the financials close lower. The market is pointed lower tomorrow too. If the selling doesn’t get started early, then light short covering is what I would expect.

F1 Comments: The market continues its move lower propelled by new supply and the FOMC announcement. The attractor remains 115/117 and we are close to that level.


F2 Comments: The market opened and did manage a rally almost to Tuesday’s auction prices. Resistance held and the market began to drift lower. The auction was weak. The market was stuck in a range w/sellers above 124-00. Then the FOMC spoke and said there were signs of economic bottoming in some sectors. Recovering economy, no more recession/depression, sell bonds. And this is what happened, IMO. Some news tomorrow, but not of the market changing kind: Jobless Claims is expected at -640K, Personal Income at -2%; Personal Spending at -.1%; Employment Cost Index at .5%; and Chicago PMI at 34.0. Want to sell early strength and see if 122-08/12 can be taken out. If support holds, will cover.

F4 Comments: Analysis favored a sell. Market did find sellers just above our 3^rd projected resistance level. The software generated valid sell signals at the levels allowed by the market.