Daily Market Comments 6 June 06

It was another disappointing day in the markets. Last week's gains were totally obliterated in a single trading day. Decliners were broadbased , putting DJIA down almost 200 points by 1.99% and NASDAQ down a terrible 2.24%. It sure looks like Iran could seriously stir up oil prices on a single comment. Good thing that oil prices settled back down near session lows when investors realised that it was merely a comment and nothing more. US economy continues to inflate like a balloon and with such a high debt gearing and a rush to pay off internationally, inflation would not look like it would slow down anytime soon. I really wonder when would everyone learn to just deal with it rather than to show their anger in the markets.

Technically, we see QQQQ back down to where it started to rise 3 trading days ago. This is again a test of the 2160 support level. We need to see a definite bounce off this level or there might be trouble. Similarly, DJIA is toying around the 11,100 support level.