Investor Sentiment Check

The markets are still weak, with small and mid-caps down the most.

Bond yields are tumbling, down roughly 6 basis points to 4.62%. The bond market is clearly signaling that the Fed it too restrictive. Today, this is beginning to show up in the futures markets, as the odds for a rate cut in 2007 are growing.

The ARMS index is elevated today, nearing 1.50. The CBOE put/call ratio is also above-average hovering near 0.91. These should help mititgate the degree of losses on this last day of the month.