By Nicholas Santiago on June 4th, 2010 9:41am Eastern Time
Since the May 25th pivot low the stock market has been buying into the potential good news. This week the current administration was on the stomp hyping the current job report for the month of May. While they were correct as the government jobs soared and the private sector jobs disappointed badly. The U.S. Dollar Index began to soar around 7:00 am EST this morning telegraphing this worst than expected May payroll report. Obviously since the release of the job report news at 8:30 am EST the S&P 500 e-mini futures tanked and are trading lower by 24.00 points to $1080.00 this morning. Those who read the Daily Market Report know that we mentioned this looks like a sell the news type of event, and it was.
The Euro currency is trading down to new lows this morning and that is where the problem remains. Simply put there is not anyone that wants to buy Euro currency. More countries are the verge of bankruptcy and ironically many of the states in the U.S. don't look much better.
This morning gold is trading lower by 3.00 points to $1207.00 an ounce. The SPDR Gold Shares (NYSE:GLD) are trading higher by $0.04 cents to $118.00.
Crude oil is lower by $1.47 to $73.17 a barrel. The United States Oil Fund (NYSE:USO) is lower by $0.68 to $33.58.
As long as the dollar remains strong the market will remain under pressure as stocks deflate. If the dollar declines the market may bounce and inflate. At this stage the dollar remains front and center. The spin masters will be out all weekend trying to paint a rosy picture. Let the dollar do the talking and the talking heads do the walking.
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