Sterling Market Commentary for Wednesday October 3rd, 2012

Sterling Market Commentary for Wednesday October 3rd, 2012

A Look at Tuesday’s Market:  The overall market moved moderately lower on Tuesday in what was really a very narrow based move.  The majority of the indices I track were higher on the day.  There was strength in the Telecoms, Biotech, Healthcare, High Tech, Utilities, Financial, Natural Gas, Oil & Gas, and Bonds.  There was weakness in the Gold/Silver, Retailers, Commodities, Oil Services, and Consumer indices.  The Transports were mixed.  In the commodities markets, Oil was lower by $0.59 to $91.89 per barrel, and Gold was lower by $7.70 to $1,775.60 per ounce. In the Grain markets,  Wheat was lower by $0.126 to $8.714 per bushel, and Corn was higher by $0.014 to $7.582 per bushel, while Soybeans were lower by $0.296 to $15.304 per bushel.

A Few Thoughts on Wednesday’s Market:  In looking at the charts from yesterday’s market I really did not see a clear overall direction being painted.  There are a very small handful of sectors that appear to be doing well, and the rest either have a sideways or downward bias.  I think that the market will probably tread water today as it waits for the Presidential debate tonight. We are faced with a very stark contrast in the two presidential nominees; and more than any other election since that of Lyndon Johnson, this election will probably determine the economic future of this country.

The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,482.36  I continue to see upside resistance on the Dow at 13,558.92.   With last Friday’s close of 13,437.13 the Dow Jones Industrial Average broke our support level of 13,345.  I now see downside support coming in at 13,279.32  Current Expectations:  I am expecting the Dow to continue to trend lower and test 13,279.32 on a closing basis.

Dow Jones Transportation Average:  The Dow Jones Transportation Average closed at 4,908.44.  I continue to see upside resistance on the the Dow Transportation Average at 4,951.07 and downside support at 4,873.76  and then at 4,795.28  This is obviously a very narrow trading range.  Current Expectations:  The Dow Transports appear to be in a downward trend.  I am expecting Dow Transports to continue to move lower and test 4,873.76 on a closing basis.

The Bottom Line:  I think the market will continue to trend sideways to lower for the next few trading sessions.