Sterling Market Commentary for Thursday November 1st, 2012
A Look at Wednesday’s Market: The overall market moved moderately lower on the 1st day of trading following 2 days of market closure due to the storm damage caused by Hurricane Sandy, a Category 1 hurricane that struck the northeastern United Stateson Monday October 29th, 2012 . Yesterday’s market was a rather lack luster session in which the main accomplishment was that the New York Stock Exchange was actually able to get people to the exchange so it could function. The opening of yesterday’s market was very crucial and important due to the significance of the month end reporting. It is not as easy as one might think to adjust the statement date at the end of the month for accounting purposes. Having the market function, and allowing month end positions to be squared up, and statements be produced is of a far greater importance than most people realize; and the nation owes a collective thanks to all the people who make the exchange function.
A Few Thoughts on Thursday’s Market: All things considered, I am again expecting another relatively lackluster market. The damage to the financial district in New York City is very severe, and it is going to take a while for things to return to normal. C0mbine this with the election next week, we are probably looking at a sideways market between now and the week of so following the election.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,096.46 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 5,087.29 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 2,657.66 I see upside resistance on the NDX currently at 2,719.21 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.
Note: We published an update report on Probe Manufacturing ‘PMFI’ this morning. Please feel free to check it out at: http://www.sterlinginvestments.com/research/pmfi/