A Look at Monday’s Market:  The overall market moved moderately lower on Monday in a relatively broad based move that saw the majority of the sector indices I track move lower as well.  There was weakness in the Gold/Silver, High Tech, Biotech, Oil Services, Commodities, Broker/Dealers, Retailers, Natural Gas, Chemicals, Cyclicals, and Oil & Gas indices.  There was strength in the Utilities,  Bonds, Transports, Banking, Airlines, Consumer, Telecom, and Healthcare related indices.

In the commodities markets,  Oil was lower by $0.96 to $91.93 per barrel, and Gold was lower by $13.40 to $1,762.20 per ounce.  In the grain markets,  Wheat was lower by $0.052 to $8.920 per bushel, and Corn was lower by $0.034 to $7.446 per bushel, while Soybeans were lower by $0.1160 to $16.10 per bushel.

A Few Thoughts on Tuesday’s Market:  I continue to look at the market with a nervous eye.  I do not believe that the strength of the overall economy is nearly as strong as the major market indices would have us believe.  This causes me to be concerned that we could see a severe and lasting downturn when the music stops.  I think that the Fed has grown increasingly desperate, and it is running out of arrows in its quiver.

Dow Jones Industrial Average:  The Dow Jones Industrial Average closed at 13,558.92  I see upside resistance on the Dow at 11,596.93 and downside support at approximately 13,345  Volume on the Dow Jone Industrial Average has been light recently,  and I generally see that as a negative sign when the Dow is trading at multi-year highs as it is.

The Bottom Line:  I think that the economy is showing signs of weakness and we could see a pullback in the near term.