Daily US Market Comments 03 Oct 2006 by MastersoEquity.com

FUNDAMENTALS
The dip in oil prices yesterday did very little to stop the markets from entering into a consolidation. Markets are at a point where a lot of energy and optimism is needed to fuel its advance. Sadly, that is exactly what we are lacking these few days. The only thing that may well serve to fuel this rally would be this Friday's job numbers. Lets continue to wait and see.

TECHNICALS
Oil prices look like it dipped but is in actual fact still in a sideways trend bouncing up and down its support level of about $60. With the oil sideways, the markets extremely overbought and a lack of any fundamental push, it is not surprising to see the markets going into a short term consolidation like it did yesterday. Even though the markets are in a consolidation, its healthy trend line stays intact and strong. Unless we see a definite break out of its trend line to downside, I would say that the consolidation is short term and the rally is still intact.


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