Daily Market Comments 2 May 06 by MastersoEquity.com

Early gains collasped during the last hour as the Fed's clarified their position on interest rate hikes... it is going to happen afterall! DJIA closed down 0.21% and NASDAQ finished down 0.77%. It seems like the better the economic data, the higher the chance of sustained interest rates hike and the greater the pressure on the markets. But looking at the indexes over the past year, what do we see? Yes, the market has been rising! Even though interest rates have been rising whole year long and oil prices hitting new highs, markets are up overall. This proves that the markets are getting stronger with each measure taken by the government and that short term fears do not over shadow long term fundamental strength.

Technically, we see DJIA in another neutral, sideways day. No big surprises there and we are certainly waiting for the move that will decide where it wants to go. Even though NASDAQ was down pretty hard, we see that it is still trading within the 2300, 2380 neutral price channel. We should see a consolidation at these levels tomorrow.




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