20060614 3:52 pm. Cash index broke long term trend line from yesterday. Looks like could retrace back to that trendline. FKLI has rebounded from low of 872 this morning to 881 currently, pointing to high probability of the cash index coming back up to test the trendline.

There is something to be said for the current market turmoil, which many commentators, analysts and experts attribute to inflation fears and interest rate fears. This is all crap, there is a positive correlation between interest rates and the stock indices. In 2002, during the height of the 'tech wreck', the S&P500 index was at 880 points, the Fed Funds rate was at 1.25%. Right now 2006, the S&P500 wis currently 1235, and Fed Funds rate is 5.00%. Anybody with any rational thought will see that as interest rates went up, the S&P500 stock index went up.