Daily US Market Comments 18 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
OPEC has officially decided to cut oil product by 1 million barrel a day at last... strange but that seemed to do little or anything at all to stop oil prices from falling further. Oil prices continue to trade downwards away from the gains of the day before. However, this along with a PPI reading that suggest that inflation is picking up again, put some pressure on the market to end down. NASDAQ was hit the hardest yesterday on a 3.29% sell off on INTC. Today's CPI number would certainly determine if this market can go further up. If CPI numbers suggest inflations are under control, the Feds may continue to hold their gun spurring the markets higher.
TECHNICALS
NASDAQ suffered the most severe correction in a day since 2 Oct yesterday dropping 1.06% in a single day. It is however, hardly surprising for both the Dow and NASDAQ to trade sideways a little or even drop off a little from this level as both indices are facing strong resistance levels. NASDAQ is up against the strong 2350 resistance that we spoke of many days ago and the Dow is of course, struggling to make historical highs every day. NASDAQ has formed some kind of an evening star formation on high volume. If followed up upon downwards today, could spell a significant correction. For now, until more data becomes available from the market movement today, markets continue to be in an uptrend on a very strong trendline.
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OPEC has officially decided to cut oil product by 1 million barrel a day at last... strange but that seemed to do little or anything at all to stop oil prices from falling further. Oil prices continue to trade downwards away from the gains of the day before. However, this along with a PPI reading that suggest that inflation is picking up again, put some pressure on the market to end down. NASDAQ was hit the hardest yesterday on a 3.29% sell off on INTC. Today's CPI number would certainly determine if this market can go further up. If CPI numbers suggest inflations are under control, the Feds may continue to hold their gun spurring the markets higher.
TECHNICALS
NASDAQ suffered the most severe correction in a day since 2 Oct yesterday dropping 1.06% in a single day. It is however, hardly surprising for both the Dow and NASDAQ to trade sideways a little or even drop off a little from this level as both indices are facing strong resistance levels. NASDAQ is up against the strong 2350 resistance that we spoke of many days ago and the Dow is of course, struggling to make historical highs every day. NASDAQ has formed some kind of an evening star formation on high volume. If followed up upon downwards today, could spell a significant correction. For now, until more data becomes available from the market movement today, markets continue to be in an uptrend on a very strong trendline.
See How Our Students Make OVer 100% Profits Month After Month Here!
posted by Jason Ng at 9:13 PM
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