Sterling Market Commentary for Tuesday February 26th, 2013
A Look at the Market Since Our Last Blog: It has been a busy couple of weeks since our last market commentary blog on Monday February 11th. In that posting I did state that I thought the overall market would continue to move sideways with an upward basis; and that is pretty much what it did until late last week when on Thursday the 21st, the Dow Jones Industrial Average closed at 13,880.62 breaking short term support at 13,927.54. Then we had the Italian election. Now it looks like we could be seeing a pullback with some profit taking in store.
I would like to point out that in the January 18th, January 22nd, and February 5th editions of the Sterling Market Commentary I warned that Dow Jones Industrial Averages would see upside resistance as it approached these levels; and that is basically what happened.
A Few Thoughts on the Upcoming Market: In looking at the charts from yesterday’s trading activity, I think there is a very good chance that we will see a pullback in the overall market. I think there is a very good chance the Dow Jones Industrial Average will continue to move lower and test its former upside resistance levels, that are now downside support, which were set in early October of last year. I see the Dow Jones Industrial Average continuing to move lower and test 13,610.15 on a closing basis.
The Bottom Line: I am expecting the Dow Jones Industrial Average to trend sideways to lower over the course of the next several trading sessions.
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