F R I D A Y   E X T R E M E   M A R K E T S
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Friday: The CRB Index has advanced 1.71 points to 210.71. The
US Dollar Index edged higher by 0.01 points to 119.08.

The Dow Industrials gained 78.47 points, at 10990.41, while
the S&P 500 rose 4.85 points, last seen at 1260.67. The
Nasdaq Composite moved higher by 38.95 points to 2149.44.

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E X T R E M E   M A R K E T   C O M M E N T A R Y
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The STOCK INDEXES closed higher on Friday due to a rebound in
technology stocks. The Nasdaq extended its rebound off Wednesday's
low but failed to fill this week's gap crossing at 2170.58 thereby
leaving the door open for sideways to lower prices during the first
half of June. Momentum indicators also remain bearish indicating that
the late week rebound in both indexes appears to be nothing more than
light short covering ahead of the weekend. If the declines resume
next week, May's reaction lows are potential targets.

The Dow posted a key reversal up due to a rebound in blue chip
stocks. Intel continued to pace the gainers among the Dow's
components up 5.3%. The Dow's other three technology components were
also higher on the day. Additional gains on Monday are needed to
confirm today's bullish reversal pattern, which would then strongly
suggest that the setback off May's high might have come to an end.

INTEREST RATES September bonds closed sharply higher on Friday and
above this spring's downtrend line crossing near 100-26 thereby
signaling that a short-term bottom has been posted. I would not be
surprised to see a modest setback on Monday as September might try
and consolidate some of this week's gains. Early weakness was tied to
the above-consensus May employment report. However, today's National
Association of Purchasing Management's data, which continues to show
weakness in manufacturing triggered a rally into the close. Momentum
indicators have turned bullish signaling that sideways to higher
prices into early-June are possible.

The CRB INDEX closed higher on Friday due to strength in grains,
meats, precious metals, foods and fiber. The CRB ended the week above
April's low crossing at 208.87 and may have marked a double bottom
this week. Momentum indicators are bearish but oversold hinting that
a short-term bottom might be in or near. Closes below this week's low
would confirm a breakout below this spring's trading range while
opening the door for a larger-degree decline into June.

ENERGY MARKETS were mostly lower on Friday as Iraq indicate that it
would continue oil exports this month under prior contracts, despite
its rejection of a one-month extension of the oil-for-food deal.

July crude oil posted an inside day with a lower close on Friday with
session lows falling short of testing the 50% retracement level of
the December/May rally crossing at 27.51. Momentum indicators are
bearish signaling that additional weakness near-term is possible. If
the decline continues, the late-April reaction low crossing at 27.25
is July's next target.

July heating oil posted an inside day with a lower close and a
breakout below the 38% retracement level of the December/May rally
crossing at 75.66. If the decline continues, May's reaction low
crossing at 74.55, which coincides with the 50% retracement level of
this spring's rally is July's next target. Momentum indicators remain
bearish signaling that sideways to lower prices into early- June are
possible.

July unleaded gas posted a downside reversal on Friday after early
strength tied to spillover short covering from Thursday's high-range
close faded in afternoon trading. Momentum indicators remain bearish
signaling that sideways to lower prices into next week are possible.
However, ongoing concerns over summer gasoline supplies are likely to
limit downside risk in the market.

July Henry Hub natural gas posted a quiet inside day with a slightly
higher close on Friday as it consolidates above last October's low
crossing at 3.86. Closes below this key support level would open the
door for a possible test of the 62% retracement level of the 1999-01
rally crossing at 3.64 later this spring. The daily ADX (a
trend-following indicator) is bearish however, momentum indicators
are oversold hinting that a pause in this spring's decline is
possible.

CURRENCIES The September Dollar closed lower on Friday due to light
profit taking ahead of the weekend. The mid-range close leaves the
door open for sideways to higher prices on Monday as the door has
been opened for additional gains during the first half of June. If
this week's rally continues, weekly resistance that crosses at
121.58, which marks the 50% retracement level of the 1985/1992
decline is September's next target later this spring. The daily ADX
(a trend-following indicator) is bullish signaling that additional
weakness is possible.

The September Swiss Franc posted a quiet inside day with a higher
close on Friday as it consolidated below broken support crossing at
.5643. If the decline continues, a test of weekly support crossing at
.5508 is possible later this month. The daily ADX (a trend-following
indicator) signals that additional weakness is possible.

The September Canadian Dollar closed higher on Friday and is poised
to test this spring's high crossing at .6541. Multiple closes above
this resistance level are needed to renew this spring's rally.
Momentum indicators are bullish signaling that additional gains early
next week are possible.

The September Japanese Yen closed higher on Friday but near session
lows due to light short covering ahead of the close. Nevertheless,
this week's rally has confirmed a breakout above this spring's
trading range crossing at .8425 thereby opening the door for
additional gains into early-June. Momentum indicators are bullish
signaling that additional gains next week are possible.

PRECIOUS METALS August gold closed higher on Friday due to light
short covering ahead of the weekend. Nevertheless, August has broken
out below April's uptrend line thereby opening the door for a test of
this spring's low crossing at 257.30 later this month. Stochastics
and RSI remain bearish signaling that additional weakness is possible
next week.

July silver also closed higher on Friday due to light short covering
ahead of the weekend. While today's mid-range close leaves the door
open for sideways trading on Monday, momentum indicators remain
bearish signaling that additional weakness during the first half of
June is possible. If the decline continues, May's low at 4.315 is a
target.

July copper ended the week on a low note while posting an inside day.
Momentum indicators remain bearish signaling that a test of May's low
at 74.75 is likely next week. Multiple closes below this support
level would confirm a breakout below this spring's trading range
thereby opening the door for a test of weekly support crossing at
74.10 later this month.

GRAINS July corn gapped above May's downtrend line and closed higher
on Friday due to massive fund short covering. While today's export
sales report of 30 million bushels was below expectations, rising
concerns over slow crop development due to cool/wet weather are
gaining attention by the market. With funds holding a huge short
position in the market, any additional bullish news will only lead to
additional short covering. I would not be surprised to see some
consolidation on Monday as traders wait for the latest planting
progress and crop conditions reports before taking additional profits
on their short positions. Today's rally turned the ADX down, which is
often associated with a market that is bottoming. From a broader
perspective, the corn market has posted a key reversal on the weekly
chart. Additional gains next week are needed to confirm this
potentially bullish reversal pattern.

July wheat also gapped up and closed higher on Friday following this
week's bullish export sales report, which showed over 18 million
bushels in new crop sales. Additional support came from increased
concerns over disease problems with the Kansas winter wheat crop.
Session highs tested May's downtrend line crossing at 2.72. Closes
above this resistance level would open the door for a larger-degree
rebound during June. Momentum indicators have also turned bullish
signaling that sideways to higher prices near-term are possible.

SOYBEAN COMPLEX July soybeans gapped above last week's high crossing
at 4.53 1/2 and closed higher on Friday due to fund short covering.
Increased concerns over the cool/wet weather, which has enveloped
much of the Midwest thereby raising concerns over emergence and
planting progress has underpinned this week's rally. Profit taking
ahead of the close could lead to further consolidation on Monday.
However, weekly momentum indicators have turned bullish signaling
that sideways to higher prices during June are possible. If the rally
continues, March's high crossing at 4.77 3/4 is July's next target.

July soybean meal closed lower on Friday despite this week's stellar
export sales report of some 257,000 metric tonnes, which was well
above pre-report estimates. Bulls should note today's downside
reversal, as the market has not responded well to friendly news. This
suggests that most of if not all of the bullish demand news might
have already been factored into prices. Stochastics and RSI have
turned bearish signaling that sideways to lower prices on Monday are
possible. It will take closes above 168 to renew this spring's rally.

LIVESTOCK August hogs closed sharply higher for the fourth day in a
row filling April's gap crossing at 64.90. The stage is set for
additional gains and a likely test of April's high crossing at 65.95
later this month. This week's rally underpinned by fund buying is due
in part to futures discount to the cash market and ideas that loin
prices should bottom next week. Momentum indicators are bullish
signaling that sideways to higher prices into early-June are
possible.

August cattle closed out the week on a high note as the stage is set
for a test of January's high crossing at 75.00 next week. The
discount of futures to the cash market along with higher cash bids
this week continues to underpin August's rally. Momentum indicators
are bullish but have become overbought warning traders to use caution
as a top may be near.

FOOD & FIBER July coffee closed higher on Friday due to light short
covering ahead of the weekend. However, a sell off ahead of the close
tempered much of today's early gains leaving the door open for
sideways to lower prices next week. This week's breakout into new
contract lows has opened the door for a test of long-term support
crossing at 51.70 later this month.

July cocoa closed higher on Friday due to light short covering
following Thursday's breakout below trading range support crossing at
955. Momentum indicators remain bearish despite their oversold
condition hinting that additional weakness into early-June is
possible. If the decline continues, the 75% retracement level at 862
is July's next target.

July sugar closed higher on Friday due to light short covering as it
consolidates around the 38% retracement level of this spring's rally
crossing at 857. Momentum indicators remain bearish signaling that
sideways to lower prices next week is still possible. If the decline
continues, fib support crossing at 832 then 808 are targets.

July cotton extended this week's short covering rally as it
consolidates above psychological support crossing at 40- cents. Light
support came from today's export sales report that came in at 107,300
bales. Additional support came from news of some 300,000 to 350,000
acres of west Texas cotton being destroyed by flooding. However,
upside potential remains limited due to this year's burdensome
carryout levels, which are expected to grow in the coming year.

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_____________________________________________________________________

T O P   N E W S
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STOCKS

Japan Stocks Review: Nikkei ends almost flat despite US gains
   http://news.ino.com/summary/?id=25622
Add2: US Equities Review: Higher on late buying despite weak NAPM
   http://news.ino.com/summary/?id=25620
UK Stocks Review: Defensive stocks boost FTSE-100's small rally
   http://news.ino.com/summary/?id=25628

FOREX

US FX Review: Euro steepens losses despite weak US NAPM
   http://news.ino.com/summary/?id=25624
Asia FX Review: Yen rises as intervention fears recede further
   http://news.ino.com/summary/?id=25621
Europe FX Review: Weak US NAPM figure gives euro a reprieve
   http://news.ino.com/summary/?id=25623

CREDIT

US Credit Review: Long end gains on weak manufacturing data
   http://news.ino.com/summary/?id=25619
Europe Credit Review: Evidence of economic weakness supports mkt
   http://news.ino.com/summary/?id=25625
Japan Credit Review: June dips slightly on profit-taking
   http://news.ino.com/summary/?id=25627

COMMODITIES

US Futures Summary: Grains up on weather; 2-month gasoline low
   http://news.ino.com/summary/?id=25626

EXCHANGES

CME May Volume Up 60% As Open Interest Tops 13 Million
   http://news.ino.com/press/?release=24507
iShares ETF Sets Single-Day Volume Record On CBOE
   http://news.ino.com/press/?release=24506
Minneapolis OK's Cash-Settled Corn And Soybean Futures
   http://news.ino.com/press/?release=24505
Euro Energy Exchange Records 1.64 Terawatt Hours In May
   http://news.ino.com/press/?release=24504
Eurex Trades 53.8 Million Contracts In May, Third Highest
   http://news.ino.com/press/?release=24503
May German Stock Volume Totals 386 Billion Euros
   http://news.ino.com/press/?release=24502

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E X T R E M E   F U T U R E S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

LBF2   Random Length Lumber Jan 2002              303.00     10.00  +3.41
CU1    Corn Sep 2001                             206 3/4     6 1/4  +3.12
XCU1   Corn Sep 2001                             206 3/4     5 3/4  +2.87
NDM1   NASDAQ 100 Index Jun 2001                 1851.50     49.00  +2.72
ZM1    U.S. Treasury 6% Bond Jun 2001          103 184/256   2 23/32  +2.69
CCK2   Cocoa May 2002                                992        23  +2.37
BOV1   Soybean Oil Oct 2001                        15.78      0.35  +2.27
XRN1   Soybean Oil Jul 2001                        15.34      0.30  +2.00
PBQ1   Frozen Pork Bellies Aug 2001               80.425     1.575  +2.00
NGK3   Henry Hub Natural Gas May 2003              3.660     0.071  +1.96

LOSERS

BDU1   Oriented Strand Board Sep 2001             217.00     -5.00  -2.42
HUZ1   New York Harbor Unleaded Gasoline Dec 20    0.7635   -0.0183  -2.38
PLN1   Platinum Jul 2001                           588.8     -14.1  -2.34
CLN1   Light Sweet Crude Oil Jul 2001              27.93     -0.50  -1.76
XEN1   Soybean Meal Jul 2001                       163.6      -2.8  -1.69
RRH2   Rough Rice Mar 2002                         5.940    -0.100  -1.66
HON1   Heating Oil Jul 2001                       0.7592   -0.0126  -1.63
DAQ1   BFP Milk Aug 2001                           15.46     -0.20  -1.28
SMN1   Soybean Meal Jul 2001                       163.6      -2.1  -1.27
PNZ1   Propane Dec 2001                           0.5150   -0.0065  -1.25
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E X T R E M E   S T O C K S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/stocks/

WINNERS

CN     CALTON,INC(NEW)                              5.94      1.13  +23.49
PDC    SOUTH TEXAS DRILLING & EXPL                  6.30      1.10  +21.15
AGIX   ATHEROGENICS                                 6.32      0.97  +18.30
SPLX   SIMPLEX SOLUTIONS                           28.00      4.34  +18.24
HLIT   HARMONIC INC                                10.01      1.49  +17.43
OS     OREGON STEEL MILLS                           8.45      1.25  +17.34
XTND   EXTENDED SYSTEMS                             7.86      1.10  +16.30
QRSI   QRS CORP                                    13.53      1.69  +14.81
CMNT   COMPUTER NETWORK TECHNOLOGY                 10.21      1.30  +14.67
PSSI   PSS WORLD MEDICAL                            5.90      0.75  +14.62

LOSERS

IDT    IDT CORP                                    14.65    -11.48  -43.93
EMEX   EMEX CORP                                   11.67     -3.12  -21.02
USG    USG CORP                                     6.69     -1.67  -19.98
KPN    ROYAL PTT NEDERLAND ADS                      7.99     -1.30  -14.01
ROAD   ROADWAY CORP                                22.45     -3.61  -13.79
PROX   PROXIM INC                                  12.75     -1.80  -12.59
ARTL   ARISTOTLE CORP                               8.96     -1.10  -12.57
CHH    CHOICE HOTELS INTL                          11.90     -1.70  -12.41
CLPT   CELLPOINT INC                                6.01     -0.79  -11.57
OCCF   OPTICAL CABLE                                9.91     -1.21  -10.99

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