* JIM'S MARKET THOUGHT OF THE DAY *

Heightened tensions between Iran and the U.K. and U.S. will limit selling interest in gold and crude oil futures early this week. And any escalation in rhetoric is likely to send prices of both commodities solidly higher. This situation, if not soon resolved, could also begin to support the U.S. Treasuries on a flight-to-quality basis.--Jim

U.S. STOCK INDEXES

The stock indexes are slightly higher in early morning electronic trading. The indexes are pausing after recent solid gains, and these pauses are not bearish.

June S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are bullish today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical support comes in at 1,440.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at 1,435.00. Upside resistance for active traders today is located at last week's high of 1,451.00 and then at 1,455.00. Buy stops are likely located just above those levels. Wyckoff's Intra-day Market Rating: 7.0

PIVOT POINT LEVELS FOR JUNE S&P 500:

Pivot:------------ 1,447.25
1st Support:------ 1,443.50
2nd Support:------ 1,439.95
1st Resistance:--- 1,450.80
2nd Resistance:--- 1,454.55

June Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are bullish today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical support is located at 810.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 805.00. On the upside, short-term resistance is seen at last week's high of 818.25. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at 820.00. Wyckoff's Intra-Day Market Rating: 7.0

PIVOT POINT LEVELS FOR JUNE RUSSELL 2000:

Pivot:------------ 815.20
1st Support:------ 813.35
2nd Support:------ 811.20
1st Resistance:--- 817.35
2nd Resistance:--- 819.20

June Dow: For today, sell stops likely reside just below support at 12,496 and then more stops just below support at 12,440. Buy stops likely reside just above shorter-term technical resistance at last week's high of 12,600 and then at 12,650. Shorter-term moving averages are bullish early today, as the 4-day moving average is above the 9-day and 18-day. The 9-day moving average is above the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Wyckoff's Intra-Day Market Rating: 7.0

PIVOT POINT LEVELS FOR JUNE DOW:

Pivot:------------ 12,567
1st Support:------ 12,535
2nd Support:------ 12,502
1st Resistance:--- 12,600
2nd Resistance:--- 12,632

U.S. TREASURY BONDS AND NOTES

U.S. T-Bonds and T-Notes are lower early today, after strong losses last week that produced bearish weekly low closes on Friday. Bears have solid downside technical momentum on their side.

June U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are bearish today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance lies at 112 even. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at Friday's high of 112 11/32. Shorter-term technical support lies at 111 16/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 111 8/32. Wyckoff's Intra-Day Market Rating: 3.5

PIVOT POINT LEVELS FOR JUNE T-BONDS:

Pivot:----------- 111 31/32
1st Support:----- 111 20/32
2nd Support:----- 111 12/32
1st Resistance:-- 112 7/32
2nd Resistance:-- 112 18/32

June U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bearish early today. Buy stops likely reside just above shorter-term technical resistance at 108.16.0, and more buy stops are likely located just above resistance at 108.24.0. Shorter-term moving averages are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Sell stop orders are likely located just below support at this month's low of 108.07.0, and then more sell stops just below support at 108.00.0. Wyckoff's Intra Day Market Rating: 3.5

PIVOT POINT LEVELS FOR JUNE T-NOTES:

Pivot:------------ 108.15.0
1st Support:------ 108.07.0
2nd Support:------ 108.01.0
1st Resistance:--- 108.21.0
2nd Resistance:--- 108.29.0