A Look at Monday’s Market: The overall market moved slightly lower on Monday in a broad based move that saw almost every sector index I track move lower. The shares of Apple, Inc. ‘AAPL’ were lower by just over $12 per share, and that sent most of the high tech indices sharply lower as well. In the commodities markets, Oil was higher by a whopping $0.02 to $105.50 per barrel, and Gold was lower by $5.90 to $1,703.90 per ounce. In the grain markets, Wheat was lower by $0.024 to $6.720 per bushel, and Corn was higher by $0.056 to $6.606 per bushel, while Soybeans were lower by $0.080 to $13.25 per bushel.
A Look Ahead to Tuesday’s Market: In my review of the charts from yesterday’s trading activity I noticed that the vast majority of the various indices I track appear to be starting to move lower. This is generally a bearish signal for the overall market. The second thing I noticed was the vast majority of the heavy volume stocks appear to be moving lower, another bearish signal for the overall market. It looks to me as if we are starting a market pullback. If that is the case, then I expect the Dow Jones Industrial Average to move lower and test support at 12,719.49 If that level fails to hold support on the Dow Jones Industrial Average, then I see a good possibility that the Dow Industrials will move lower and test 12,391.25 on a closing basis.
The Bottom Line: I am expecting the overall market to move lower and that this could very well be the start of a market correction.