A Look at the Dow Jones Industrial Average:
Sterling Market Commentary for Friday June 21st, 2013
A Look at the Market Since Our Last Update: The overall market moved sharply lower on Wednesday and Thursday of this week, with the Dow Jones Industrial Average dropping almost 550 points in 2 days. The other major market indices have shared similar fates with all of them moving lower as well. In the commodities markets, Oil was lower by $3.34 to $95.14 per barrel, and Gold was lower by a whopping $87.80 to $1,286.20 per ounce. In the grain markets, Wheat was lower by $0.064 to $7.004 per bushel, and Corn was lower by $0.090 to $6.732 per bushel, while Soybeans were lower by $0.254 to $14.974 per bushel.
A Few Thoughts on the Upcoming Market: I should point out that despite the massive move lower over the course of the last couple of trading days, the market has not reached is not significantly over sold, in other words it could easily move a lot lower. I have written countless times about my belief that the Fed has created a bubble in the bond market of such size that when it bursts, it will make the bursting of the housing bubble look like child’s play. I have also commented many times that I believe the Fed’s easy money policies has over inflated commodity prices. With the primary driver of the markets recent move lower being concerns over the ending of its Quantitative Easing programs, we got a taste of how the Fed has over inflated the markets and commodity prices as we have seen a sharp sell off in both stocks and commodities in the last few days.
Dow Jones Industrial Average: The Dow Jones Industrial Average closed yesterday at 14,760.32. I see upside resistance on the Dow Jones Industrial Average at 14,865.14 and downside support at 14,421.49 and then at 14,035.67 Current Expectation: I see the Dow Jones Industrial Average continuing to move lower and testing 14,421.49 on a closing basis. I have inserted a chart of the Dow Jones Industrial Average below for your review.
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