Stock Market Analysis

Wednesday, May 17, 2006

Daily Market Comments 18 May 06 by MastersoEquity.com

Markets dropped like an earthquake yesterday as DJIA dropped by 1.88% and NASDAQ by 1.5%. This is a broad based decline with decliners beating advancers in the ratio of over 70:30. Higher than expected inflation numbers sparking further interest rate rise fears have caused these series of drops even though oil prices are dropping almost every day as we speak.

Technically, we see NASDAQ losing ground unexpectedly as it fails to establish a support level. It is like a mountain climber losing its last foot hold... DJIA broke its 30MA decisively to downside. Both indexes look like there are more downside to come with the only consolation being that both indexes have reached deep oversold levels on stochastics. Well, the markets always surprise us especially when sentiments are widely in one direction. Lets see if we can experience another surprise soon.



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