Sterling Market Commentary for Thursday January 26th, 2012

A Look at Wednesday’ Market:  The overall market was moderately higher in a broad based move that saw the majority of the sector indices I track move higher on the day.  The strongest sectors were the Gold/Silver, Biotech, Airlines, Natural Gas, Commodities, Oil Services, High Tech, Utilities, Healthcare, and Cyclicals.  There was weakness in the Broker/Dealers, and Banking Indices.

A Few Thoughts Before Thursday’s Open:  The Dow Jone Industrial Average closed Wednesday at 12,758.85  and in the process it broke above short term upside resistance.  I see the next upside resistance target on the Dow Jones Industrial Average at 12,810.54  I see the Dow continuing to move higher and test this level on a closing basis.  The technology indices appear to be breaking out to the upside, primarily I attribute this to the strong performance of Apple, Inc.

I will admit I am just not enthused about much of anything this morning.  I am deeply disappointed by the negative campaigning by the Republican candidates,  I think Obama’s election year politics are going to be deeply destructive, and the Bernanke’s Fed is creating a bond bubble and in the process enabling disastrous policies that could make the 2008 financial crisis look like a warmup event.  Additionally I do not see the European financial crisis as really being solved, or anything close to it.   I guess I am just in one those moods.

The Bottom Line:  The market will probably go higher.