Sterling Market Commentary for Tuesday October 9th, 2012
A Few Thoughts on Monday’s Market: The overall market basically moved sideways Monday on a lackluster trading day in which the bond markets and banks were closed. What was noticeable in Monday’s market was that many of the high tech indices I look at appear to be in the process of breaking lower; thus signalling weakness in the high tech portion of the U.S. economy. In the commodities markets, Oil was lower by $0.55 to $89.33 per barrel, and Gold was lower by $5.10 to $1,775.70 per ounce. In the grain markets, Wheat was higher by $0.034 to $8.610 per bushel, and Corn was lower by $0.060 to $7.420 per bushel, while Soybeans were $0.004 to $15.510 per bushel.
A Look at Tuesday’s Market: I think the election debate schedule now has the markets attention, and Thursday night’s debate between Joe Biden and Paul Ryan promises to be a really entertaining event. I hate to say it, but I think the market is being dominated by the computers with a majority of the humans doing their best to tread water until there is election clarity.
The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,583.65 I am now looking at upside resistance on the Dow Jones Industrial Average at 13,692.59 on a closing basis. I now see downside support coming in at 13,406.91 on a closing basis. Current Expectations: I am expecting the Dow Jones Industrial Average to continue to move higher and test 13,692.59 on a closing basis.
Dow Jones Transportation Average: The Dow Jones Transportation Average closed at 5,057.05. 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.
The Bottom Line: I think the market will continue to trend sideways to lower for the next few trading sessions.