Sterling Market Commentary for Tuesday November 6th, 2012
A Look at Monday’s Market: The overall market moved slightly higher yesterday in a broad based move that saw the majority of the indices I track move higher on the day as well. There was strength in the Biotech, Oil Services, High Tech, Transports, Chemicals, Financials, Cyclicals, Commodities, and Retailers. There was weakness in the Gold/Silver, Telecom, Pharmaceuticals, and Consumer indices. There was strength in bonds as interest rates moved lower.
A Few Thoughts on Tuesday’s Market: In looking at the charts from Monday’s trading activity I really did not see anything that had any significance. It was pretty much a lackluster trading session as the market basically tracked sideways prior to the election. My best estimates are that we are going to see the market continue to move sideways to lower until the results of the election are known.
I would like to take this opportunity to encourage everyone to vote today. I believe that democracy works best when as many people as possible participate in the process. I believe that participation is more than just voting; I believe that participation in the process involves being informed on the issues and knowing the position of the candidates on those issues, as well as their record of actions on those issues. Please try to form your own opinions and draw your own conclusions; and ask yourself, do you think the candidate you are considering voting for is actually capable of doing what they say they are going to do.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,112.44 I see upside resistance level on the Dow Jones Industrial Average at 13,275.20 on a closing basis. I now see downside support coming in at 13,000.71 and then at 12,943.82 on a closing basis. I should point out that the support level at the 12,943.82 level is basically a “double bottom” on the charts and breaking through this level would be significant. 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 13,000.71 and then 12,943.82 on a closing basis.
Dow Jones Transportation Average: The Dow Jones Transportation Average closed at 5,123.86 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.
NASDAQ 100 Index ‘NDX’: The NDX closed yesterday at 2,672.91 I see upside resistance on the NDX currently at 2,687.52 and downside support at 2,647.47 and then at 2,623.33 on a closing basis. Current Expectations: I think the NDX is going to continue to move lower and test 2,647.47 and then 2,623.33 on a closing basis.
The Bottom Line: I think the market will continue to move lower for the next few trading sessions.