Sterling Market Commentary for Tuesday October 9th, 2012

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.