A Look at Monday’s Market Activity: The overall market finished Monday mixed with the S&P 500 slightly higher, while the Dow Jones Industrial Average and NASDAQ finished slightly lower. Oil was higher by $1.25 to $99.58 per barrel, and Gold was higher by $14.30 to $1,678.30 per ounce. In the grain markets Corn was higher by $0.088 to $6.20 per bushel, Wheat was higher by $0.092 to $6.196 per bushel, and Soybeans were higher by a whopping $0.304 to $12.17 per bushel.
A Few Thoughts Before the Open: It should be noted that on Friday the Dow Jones Industrial Average closed Friday at 12,720.48 Last summer the Dow closed at 12,724.41 on July 21st, and at 12,719.49 on July 7th. This is significant because if we see the Dow Jones Industrial Average moves back lower from these levels, then we will effectively have put in place a “triple top,” which should be considered a significant point of upside resistance. It should also be noted that this move higher has not been confirmed by the either the S&P 500 or the Dow Jones Transportation Average both of which still measurably below last summer’s highs.
I know it has been a while since I last blogged, but I would still be a little skeptical of this move higher.
The Bottom Line: My thoughts are that this political season is going to rough on the markets. I would not be expecting any move back towards all-time highs.