dead cat currently mid air, page-10

i'll give it 4weeks-5weeks(wouldn't be surprised if much lees) and new highs will be realised. Just my opinon.

"Wall St Week Ahead: Stocks still have room to extend rally


By Herbert Lash

NEW YORK, June 8 (Reuters) - U.S. stocks could move higher next week after a bond market rout led investors to wonder if the threat of inflation was on the horizon or if the economy was actually stronger than expected, and good for stocks.

Major stock market gauges recovered on Friday after a bond sell-off pushed the benchmark 10-year U.S. Treasury note's yield up to 5.25 percent -- matching the fed funds rate target at one point -- from levels below 5 percent a week ago. That jump in government bond yields rattled investors who, skittish about a bull market that has lasted longer than most, worry that rising capital costs will cut corporate profits.

Around midday on Friday, stocks began rallying as the 10-year note's yield retreated to around 5.11 percent.

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Friday's recovery after a three-day slide is a good indication of where the market is headed as investors realized they overreacted to a spike in market interest rates, said David Joy, market strategist at RiverSource Investments.

"Interest rates are where they should be, and we haven't had any inflation. This a little adjustment to a new level of rates, a level that the stock market doesn't have a problem with," Joy said.

The blue-chip Dow Jones industrial average <.DJI> climbed 157.66 points, or 1.19 percent, to end Friday's session at 13,424.39. The broad Standard & Poor's 500 index <.SPX> gained 16.95 points, or 1.14 percent, to finish at 1,507.67. The Nasdaq Composite Index <.IXIC> advanced 32.16 points, or 1.27 percent, to close at 2,573.54.

Falling oil prices on Friday also helped the major U.S. stock indexes rebound. U.S. crude oil for July slid $2.17 to settle at $64.76 a barrel on the New York Mercantile Exchange. For the week, NYMEX July crude fell 32 cents. Continued...

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