05.28.09 - Fast Breaks

Intermarket cross-talk among bonds, equities and commodities have led to extremely fast and wide-ranging moves during the last several days. Most of the majors are slightly in the red, although the S&P is still hanging on to break even. My larger concern is that internals are weakening. Also, beyond Energy (XLE), leadership is lacking with specific weakness in the Semi's (SMH) and Consumer Discretionaries (XLY). The Seven-Year Treasury Auction results are coming up any moment now.