Daily US Market Comments 08 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Markets fell yesterday as investors eagerly await the coming job reports. The tech sector fell the most as NASDAQ fell to a 3 days low. The rebound in oil price to $62.78 also put additional pressure on a market that has seen historical highs. What the market needs right now is a good dose of strong data in order to fuel further advances. A favorable job report would certainly be the first thing the market would like to see as that is what the Feds will be paying a lot of attention to right now.
TECHNICALS
Markets continue its path sideways as it closed down for the day. The major indices have been moving in a horizontal line for the past half a month and that is not typical of the staircase formation. The staircase formation should take them to new highs before going sideways. This behavior tells me that the markets are up against their first real resistance level since the raly begun. The Dow seemed stuck against the 12315 level and the NASDAQ composite looks up against a wall of metal at the 2450 level. These levels have been tested and failed twice over the last 2 weeks forming a strong technical resistance level. Even though the major indices are off their short term overbought condition, they remain severely overbought on a long term scale. If we do not see a clear break to upside soon, this market may continue to go neutral and then into a correction.
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Markets fell yesterday as investors eagerly await the coming job reports. The tech sector fell the most as NASDAQ fell to a 3 days low. The rebound in oil price to $62.78 also put additional pressure on a market that has seen historical highs. What the market needs right now is a good dose of strong data in order to fuel further advances. A favorable job report would certainly be the first thing the market would like to see as that is what the Feds will be paying a lot of attention to right now.
TECHNICALS
Markets continue its path sideways as it closed down for the day. The major indices have been moving in a horizontal line for the past half a month and that is not typical of the staircase formation. The staircase formation should take them to new highs before going sideways. This behavior tells me that the markets are up against their first real resistance level since the raly begun. The Dow seemed stuck against the 12315 level and the NASDAQ composite looks up against a wall of metal at the 2450 level. These levels have been tested and failed twice over the last 2 weeks forming a strong technical resistance level. Even though the major indices are off their short term overbought condition, they remain severely overbought on a long term scale. If we do not see a clear break to upside soon, this market may continue to go neutral and then into a correction.
Learn A Systematic Way of Looking For Trading Opportunities!
posted by Jason Ng at 6:15 PM
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