Daily US Market Comments 04 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
Oil prices took a surprising dip yesterday to new lows below $59.00! That dip was the "energy" that gave the "enthusiasm" that we were talking about yesterday, pushing the Dow to close yet another historical high. With the Mexican oil rigs safe from hurricane, speculations are that US oil reserves will once again be more than estimated. Oil will certainly continue to be a major mover of the market until the Job figures this Friday.
TECHNICALS
What a day for oil prices! What looked like a pretty strong support level at about $60 collasped yesterday as oil prices break below $59! This break to downside have placed oil prices back on the downtrend slide. With much of its oversold condition worn off at the $60 support level, there certainly is much more potential for it to move further down. With this, the Dow continues to close higher along its rising trendline and NASDAQ took a little peep to upside. NASDAQ looks slightly weaker than the Dow as it failed to move to upside with the magnitude that we saw in the Dow. NASDAQ has managed to wear off much of its overbought condition and certainly in line to continue its uptrend should it at least close above the high of 2 days ago. Failing which, we could see NASDAQ continue its consolidation for a few days more. One consolation for those of us worried about the weakness in NASDAQ is the strong support that is being witnessed at the 200MA at about the 2221 level. It is not likely to break below that level unless a really really good reason emerges.
We Are Holding On 2 Winners Right Now With Over 40% Profit... CNQ and GM! Join Us Now!
Oil prices took a surprising dip yesterday to new lows below $59.00! That dip was the "energy" that gave the "enthusiasm" that we were talking about yesterday, pushing the Dow to close yet another historical high. With the Mexican oil rigs safe from hurricane, speculations are that US oil reserves will once again be more than estimated. Oil will certainly continue to be a major mover of the market until the Job figures this Friday.
TECHNICALS
What a day for oil prices! What looked like a pretty strong support level at about $60 collasped yesterday as oil prices break below $59! This break to downside have placed oil prices back on the downtrend slide. With much of its oversold condition worn off at the $60 support level, there certainly is much more potential for it to move further down. With this, the Dow continues to close higher along its rising trendline and NASDAQ took a little peep to upside. NASDAQ looks slightly weaker than the Dow as it failed to move to upside with the magnitude that we saw in the Dow. NASDAQ has managed to wear off much of its overbought condition and certainly in line to continue its uptrend should it at least close above the high of 2 days ago. Failing which, we could see NASDAQ continue its consolidation for a few days more. One consolation for those of us worried about the weakness in NASDAQ is the strong support that is being witnessed at the 200MA at about the 2221 level. It is not likely to break below that level unless a really really good reason emerges.
We Are Holding On 2 Winners Right Now With Over 40% Profit... CNQ and GM! Join Us Now!
posted by Jason Ng at 8:05 PM
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