Dow Jones Industrial Average

The Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,610.15 In doing so, the Dow Jones Industrial Average completed a small cup pattern with a measured to 13,692.69 on a closing basis. 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 and downside support 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 5,0046.43. 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.

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A Look at Friday’s Market: The overall market moved moderately higher in a relatively broad based move. In the commodities market, Oil was lower by $1.83 to $89.88 per barrel, and Gold was lower by $15.70 to $1,780.80 per ounce. In the grain markets, Wheat was lower by $11.60 to $8.574 per bushel, and Corn was lower by $0.090 to $7.480 per bushel, while Soybeans were unchanged at $15.514 per bushel. Interestingly, the bond market saw a sharp sell off that moved interest rates higher across the various maturities. The yield on the 30-Year US Treasury Bond jumped 0.084% from 2.882% to 2.966% This is just under a 3% move in rates, and a 3% move in basically anything is a big move. The yield on the 5-Year and 10-Year US Treasury instruments made similar moves. While moves of this magnitude are not unheard of in the bond market; I think it does somewhat demonstrate the ineffectiveness of the Fed’s Quantitative Easing programs

Dow Jones Transportation Average: The Dow Jones Transportation Average closed at 5,012.71. 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 Dow Jones Industrial Average: The Dow Jones Industrial Average closed at 13,482.36 I continue to see upside resistance on the Dow at 13,558.92. With last Friday’s close of 13,437.13 the Dow Jones Industrial Average broke our support level of 13,345. I now see downside support coming in at and downside support at 13,279.32 Current Expectations: I am expecting the Dow to continue to trend lower and test 13,279.32 on a closing basis.

A Look at Monday’s Market: The overall market was mixed on Monday with the S&P 500 and the Dow Jones Industrial Average finishing the day moderately higher while the NASDAQ finished the day slightly lower. Among the indices I track there was strength in the Airlines, Natural Gas, Gold/Silver, Biotech, Insurance, Healthcare related, Commodities, Transports, Retailers, and Financials. There was weakness in the Telecoms, High Tech, and Utilities. In the commodities markets, Oil was higher by $0.29 to $92.48 per barrel, and Gold was higher by $9.40 to $1,780.50 per ounce. In the Grain markets, Wheat was lower by $0.182 to $8.842 per bushel, while Corn was higher by $0.004 to $7.566 per bushel, and Soybeans were lower by a whopping $0.406 to $15.602 per bushel.