Daily US Market Comments 10 July 2006 by MastersoEquity.com
Fundamentals
A disappointing day last Friday with the market giving up all of its gains so far. This is probably due to high oil prices and a slew of economic data suggesting that the US economy is slowing down. Could this also be a pricing in of a bearish sentiment surrounding the coming second quarter earnings season?
Technicals
The markets have been moving largely sideways since the FOMC rally. The lows of the rally have held strong and we should see it being tested by today. If the lows hold, it might be a good support level from where the markets might stage a comeback. For now, the downside momentum is still strong with stochastics trailing down steadily with the market from an overbought position.
A disappointing day last Friday with the market giving up all of its gains so far. This is probably due to high oil prices and a slew of economic data suggesting that the US economy is slowing down. Could this also be a pricing in of a bearish sentiment surrounding the coming second quarter earnings season?
Technicals
The markets have been moving largely sideways since the FOMC rally. The lows of the rally have held strong and we should see it being tested by today. If the lows hold, it might be a good support level from where the markets might stage a comeback. For now, the downside momentum is still strong with stochastics trailing down steadily with the market from an overbought position.
posted by Jason Ng at 8:56 PM
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