Sterling Market Commentary for Friday October 12th, 2012

Sterling Market Commentary for Friday October 12th, 2012

A Look at Thursday’s Market:  The overall market moved slightly lower yesterday in a broad based move that saw the majority of the sector indices I track drift lower.  This is despite a day in which initial jobless claims was reported as being sharply lower.  However, I should point out that I saw a news report this morning where the Labor Department stated that a large state failed to report its initial jobless claims numbers.  Therefore I would look for this week’s jobless claims to be revised higher, and for the number of initial jobless claims reported next week to be rebound back higher.  In the commodities markets,  Oil was higher by $0.82 to $92.07 per barrel, and Gold was higher by $5.50 to $1,770.60 per ounce.  In the grain markets, Wheat was higher by $0.162 to $8.860 per bushel, and Corn was higher by $0.364 to $7.732 per bushel, while Soybeans were higher by $0.252 to $15.484 per bushel.

A Few Thoughts on Friday’s Market:  In looking at the charts from yesterday’s trading activity,  the overall trend of the market continues to appear to be moving lower.  I just  do not see anything that is going to make that change.  I think that we are going to see a fair amount of people sitting on the sidelines prior to Tuesday’s upcoming Presidential Debate.

The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,326.39 With yesterday’s move the Dow Jones Industrial Average broke through 2 supporting trendlines and closed below our previous support level of 13,406.91  I am now looking at upside resistance on the Dow Jones Industrial Average at 13,406.91 on a closing basis. I now see downside support coming in at 13,273.32 and then  13,000.71 on a closing basis.  Current Expectations:  I think we are starting a new trend lower in the Dow.  I am expecting the Dow Jones Industrial Average to continue to move lower and test 13,373.32 on a closing basis.

Dow Jones Transportation Average:  The Dow Jones Transportation Average closed at 5,000.46.  I see upside resistance on the the Dow Transportation Average at 5,215.97 and downside support at 4,873.76  and then at 4,795.28.  Current Expectations:  I think the Dow Transports are going to track sideways between support and resistance for the foreseeable future.

The Bottom Line:  I think the market will continue to trend sideways to lower for the next few trading sessions.