A Look at Wednesday’ Market: The overall market was moderately higher in a broad based move that saw the majority of the sector indices I track move higher on the day. The strongest sectors were the Gold/Silver, Biotech, Airlines, Natural Gas, Commodities, Oil Services, High Tech, Utilities, Healthcare, and Cyclicals. There was weakness in the Broker/Dealers, and Banking Indices.
A Few Thoughts Before Thursday’s Open: The Dow Jone Industrial Average closed Wednesday at 12,758.85 and in the process it broke above short term upside resistance. I see the next upside resistance target on the Dow Jones Industrial Average at 12,810.54 I see the Dow continuing to move higher and test this level on a closing basis. The technology indices appear to be breaking out to the upside, primarily I attribute this to the strong performance of Apple, Inc.
I will admit I am just not enthused about much of anything this morning. I am deeply disappointed by the negative campaigning by the Republican candidates, I think Obama’s election year politics are going to be deeply destructive, and the Bernanke’s Fed is creating a bond bubble and in the process enabling disastrous policies that could make the 2008 financial crisis look like a warmup event. Additionally I do not see the European financial crisis as really being solved, or anything close to it. I guess I am just in one those moods.
The Bottom Line: The market will probably go higher.