9000 on the Dow is the last important support area, if this level is breached on a closing basis, Look out below! Interest rate update---- the 10 yr. bond yield has gone to 4.5% since our last commentary in July when it was 4.17%. The rate trend has reversed from down to up. Obviously the rate has gone up too much too fast, but the on balance trend in interest rates is now up. Homebuyers beware.

We landed on S&P 965 yesterday! This is support. But we got there on just the third trading day of the month. Therefore, one can only conclude, there is no juice in this market. The players are at the beach and they have taken their money with them. Be very careful. You can cover some of your shorts here and nibble on the long side, but doing nothing is probably the best advice in the month of August.