Trading Alert

The market opened flat and promptly began a sell off that continues at this time, with the Dow down 130, and the SPX down 14.5. All of the rest of the major indexes are also down at 12:30pm 

 Commodities are getting hit, with Gold off 16.7 at 1523.70 and Silver off 1.04 at 40.15.  Oil is also fading, trading 109.54, off 1.51 and Brent trading at 121.41, off 1.04.  The rest of the commodity complex is also off, with red arrows in every name except live cattle.  It looks like the risk trade is off again, at least for the day.

The Euro is a little higher at 1.484 while the Dollar is off again at 73.04.  The debt market continue to act very well, with the Note trading 1/4 higher at 3.218% and the Long Bond trading 1/2 higher at 4.327%.

Signs continue to grow that the economy is slowing.  This morning the ADP payrolls report printed at 179,000 against the expected 195,000 and the revised 207,000 in March.  This ADP report is notorious for being inaccurate, but it does raise issues about the NFP due on Friday that many now think may be very disappointing.  IN addition, the ISM Services report dropped to 52.8, down from 57.5 last month, and only 2.8 points from the magic number 50, and anything below 50 signals contraction of the economy.  All of the rest of the survey indexes included in the report demonstrate continued but slowing growth.  The only survey to show improvement were imports and supplier deliveries.

The SPX is trading back down at 1342.6, very close to the to the neck line of the IHS that propelled the advance and is trading right at the 38.2 Fib retracement line of the move from the April lows to the May 2 highs.  This a very likely place to see some support and a reverse of this current decline.  I am watching for close at the short term trading to see if I can't see a reversal at this level.  I will be offering trading ideas, perhaps as early as this afternoon.

Best To Your Trading!

Bill