Friday, July 14, 2006

 
Daily Market Commentary

Updated Thursday, 7/13 for Friday
's market

Key DOW Levels for 7/14

3

UP

Above 11,150

DN

Below 10,800


Below 10,800

- Dow breaks below major lower trend line and capitulates. The index opened firmly below the major trend line, suggesting potential for continued weakness toward June lows. After a period of consolidation, the index capitulated lower and closed with a 145 point loss.

- The NASDAQ and S&P both experienced notably weakness during today's session. In similar fashion to yesterday's session, the indexes closed near intraday lows and appear to have established a clear short-term downtrend.

Summary

The Dow continued to display the bearish sentiment established during yesterday's session. While most technical indication suggest additional weakness, we should exercise a degree of caution in the near-term. Considering the magnitude of the recent decline, we could a see period of consolidation and/or upward retracement before the downtrend resumes in earnest.

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