Daily Market Comments 3 July 2006 by MastersoEquity.com
Fundamentals
Last week have been truly quite a ride for most traders and a good relieve for traders who have been averaging down for a while now. Markets rallied strongly on a favorable Fed release hinting to a pause in interest rate rise at last. Along with a spruce of great economic data like a higher CPI and PCE deflator, we can almost expect the rally to follow through into this Independance Day week. One silent evil persists in the background as oil prices continue to trade secretly higher throughout the week and have led to a rally in its ETF (USO) by over 4% in a week.
Technicals
DJIA and NASDAQ has done extremely well in breaking out of their price channels last week. NASDAQ has formed a new support level at the 2100 point and DJIA has formed a support level off the 10,900 point. Both indexes are showing a higher high and a higher low on Friday indicating more strength to upside. We can expect this rally to sustain if significant strength follows up this week.
Last week have been truly quite a ride for most traders and a good relieve for traders who have been averaging down for a while now. Markets rallied strongly on a favorable Fed release hinting to a pause in interest rate rise at last. Along with a spruce of great economic data like a higher CPI and PCE deflator, we can almost expect the rally to follow through into this Independance Day week. One silent evil persists in the background as oil prices continue to trade secretly higher throughout the week and have led to a rally in its ETF (USO) by over 4% in a week.
Technicals
DJIA and NASDAQ has done extremely well in breaking out of their price channels last week. NASDAQ has formed a new support level at the 2100 point and DJIA has formed a support level off the 10,900 point. Both indexes are showing a higher high and a higher low on Friday indicating more strength to upside. We can expect this rally to sustain if significant strength follows up this week.
posted by Jason Ng at 7:17 PM
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