Daily US Market Comments 14 July 2006 by MastersoEquity.com
FUNDAMENTALS
Markets slump under continuous pressure from record breaking oil prices and continued middle east unrest. The Dow avalanched 1.52% and NASDAQ collasped 1.73%. Oil prices continue to hold above a record $78 per barrel with continued pressure from the middle east. The second quarter earnings have not been great so far with companies reporting in lower than estimates and more releasing warnings beforehand. This might indicate that the interest rate hikes have been overdone and have affected corporate profitability. With no upbeat factors in the environment, we might have to look forward to next week's CPI numbers for some shade of bullishness.
TECHNICALS
Unquestionably a down day in the markets as NASDAQ push to new lows. Momentum to downside continue to be strong as NASDAQ breaks its 2100 support level in this tech led drop. Stochastics indicate that the markets are not at oversold levels yet suggesting more downside to go, continuing the intermediate down trend so far. Unless the markets prove otherwise quickly, this trend is set and here to stay.
Markets slump under continuous pressure from record breaking oil prices and continued middle east unrest. The Dow avalanched 1.52% and NASDAQ collasped 1.73%. Oil prices continue to hold above a record $78 per barrel with continued pressure from the middle east. The second quarter earnings have not been great so far with companies reporting in lower than estimates and more releasing warnings beforehand. This might indicate that the interest rate hikes have been overdone and have affected corporate profitability. With no upbeat factors in the environment, we might have to look forward to next week's CPI numbers for some shade of bullishness.
TECHNICALS
Unquestionably a down day in the markets as NASDAQ push to new lows. Momentum to downside continue to be strong as NASDAQ breaks its 2100 support level in this tech led drop. Stochastics indicate that the markets are not at oversold levels yet suggesting more downside to go, continuing the intermediate down trend so far. Unless the markets prove otherwise quickly, this trend is set and here to stay.
posted by Jason Ng at 7:41 PM
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