Daily US market comments 13 July 2006 by MastersoEquity.com

Fundamentals
Markets have made a decision at last to move to downside. In view of the largely bearish sentiments so far, this move is really not surprising. This must be good news for swing traders though as a sideways market is really bad for swing traders like us. The Dow corrected 1.09% and NASDAQ 1.81% in an extremely broadbased move. Decliners beat advancers more than 2 : 1 and twice as many stocks made new lows yesterday than new highs. Oil prices continue to push record highs and more companies lower their earnings estimates. There is simply no significantly positive news to count on today.

Technicals
The Dow broke to downside following the leadership of NASDAQ at last. The Dow has managed to hang on to their FOMC day rally low for a very long time now and with today's close this near to the low of FOMC day rally, we can see that it will probably break that level should NASDAQ continue its weakness. NASDAQ broke its important 2100 psychological support level yesterday with a lot of strength closing at the low of the day. The downward momentum is definitely strong and I doubt we are seeing a bottom as yet.