1:30pm (EST)

The market is pulling back following yesterday’s huge rally as Wall Street gets ready for the long holiday weekend.  May was difficult month for the bulls and they have made some noise this week but the trend still seems to be lower.

The euro has been the main topic of discussion throughout this pullback and Spain had its debt downgraded (imagine that) today by one of the rating agencies which has led to today’s decline.

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Consumer sentiment was pretty much flat in May from April as it stayed roughly unchanged.  The May numbers on the overall index came in at 73.6, up from April’s reading of 72.2.  Wall Street was expecting a number of 73.3.

As a result, the Dow is currently down 104 points, or 1%, and is trading at 10,155 while the S&P 500 is lower by 11 points, or 1%, at 1,092.  The Nasdaq is showing a 24 point loss, or 1.1%, and is at 2,253.

We are looking forward to the long weekend but next week is shaping up to be a doozy.  We still think this market is set to test the lows and we will be looking for some new trades to take advantage of the volatility.

We will be back Monday night with the Weekly Wrap so have a good one until then.