Daily Market Comments 07 July 2006 by MastersoEquity.com

Fundamentals
Markets were down marginally yesterday. DJIA dropped by 0.66% and NASDAQ dropped by 0.08%. The drop, however, was marginal with no leadership. Advancers and decliners are almost equal with more stocks making new highs than lows. This might be attributed to the service industry reports pointing to the effectiveness of the interest rate hikes so far. Crude oil fell for a 2nd consecutive day on an unexpected rise in oil inventory and could have contributed to the slight optimism. The job reports will be out tomorrow and that could cast the definitive lot on the short term market direction.

Technicals
Markets are sideways at best yesterday. That marginal move failed to make any change in sentiments in both indexes. We see, however, that the low established on the rally of 29 June is still well in place and in force, preserving the bullish inclination that have been established. Looking at DJIA, we see a typical consolidation pattern developing that can result in either a big upwards or downwards move within the next 2 days. With markets inclined to upside, I would think the chances are pretty good to upside.