Daily US Market Comments 26 July 2006 by MastersoEquity.com

FUNDAMENTALS
An up day in the markets yesterday bolstered by steep correction in oil prices with the middle east crisis looking to come to an end. This may also be a show of confidence that the present oil reserves are more than sufficient in the US. Nonetheless the markets moved up late and unexpectedly showing a strong bullish sentiment towards the end of the day.

TECHNICALS
Markets were up yesterday in a follow through on the rally of 2 days ago. Breadth reading is healthy eventhough the move have been backed by a lesser than desired amount of volume. The dow is showing a lot more promise as it made a higher high and a higher low breaking the high of the Bernanke Bounce. This definitely gives the dow more reason to go up than NASDAQ which is at best still just trading sideways. This is completely understandable as the Techs have been reporting in with less than ideal earnings so far. Should the markets follow through today, we may see the Dow testing the June highs soon. NASDAQ needs to show a committed break to top side before it has any hopes of going any higher.