Daily Market Comments 29 June 06 by MastersoEquity.com
Fundamentals
Markets staged a weak rebound yesterday regaining a little piece of lost ground. DJIA was up marginally by 0.45% and NASDAQ by 0.55% just ahead of the Fed meeting today. There are some unlikely optimism that the Fed might just call a pause to the rate hikes today and might have been the fuel to the rebound yesterday. In reality, the Fed release can go either way... they can either really call a pause or to actually hike rates higher than expected to curb the growing inflation numbers. With the economy under increasing pressure from external factors, further tightening is not surprising. As the Fed meeting is in the afternoon, early trading today may be slow with low volumes.
Technicals
The market rebound yesterday was more of a neutral sideways movement rather than any significant rebound or start of any rally. Intraday prices stayed down for most of the day until a late rally during the last hours. Both DJIA and NASDAQ ended with a lower low and a lower high which casts a bearish shadow over both indexes. Of significance is that the drop of 2 days ago created in both indexes a kind of a bearish channel with the channel line limited by their 30SMA. If this price channel holds true, we may really be seeing more downside to come.
Markets staged a weak rebound yesterday regaining a little piece of lost ground. DJIA was up marginally by 0.45% and NASDAQ by 0.55% just ahead of the Fed meeting today. There are some unlikely optimism that the Fed might just call a pause to the rate hikes today and might have been the fuel to the rebound yesterday. In reality, the Fed release can go either way... they can either really call a pause or to actually hike rates higher than expected to curb the growing inflation numbers. With the economy under increasing pressure from external factors, further tightening is not surprising. As the Fed meeting is in the afternoon, early trading today may be slow with low volumes.
Technicals
The market rebound yesterday was more of a neutral sideways movement rather than any significant rebound or start of any rally. Intraday prices stayed down for most of the day until a late rally during the last hours. Both DJIA and NASDAQ ended with a lower low and a lower high which casts a bearish shadow over both indexes. Of significance is that the drop of 2 days ago created in both indexes a kind of a bearish channel with the channel line limited by their 30SMA. If this price channel holds true, we may really be seeing more downside to come.
posted by Jason Ng at 11:56 PM
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