One Step Forward, Two Steps Backwards

1:35pm (EST)

The bears are back in business after holding resistance and getting some worse-than-expected economic numbers. Futures were already pointing towards a weak open but got progressively worse as we headed towards the bell after the release of the jobless claims numbers.

Initial Claims came in at 429,000 which was greater than the 413,000 the market had penciled in. The latest jobless claims figure topped the upwardly revised count of 420,000 that was recorded from the prior week. Continuing Claims also rose to 3.70 million, up from 3.68 million.

This was a disappointing report, for sure, but today’s downward pressure can also be attributed to oil which is down nearly 7%. The IEA (International Energy Agency) held an emergency meeting this morning and announced they would release 60 million barrels of oil to lessen the impact of supply disruptions caused by the Libyan unrest.

This has led to a sell-off in commodity prices and a higher dollar.

Oil is down $4 to $91.50 a barrel. Gold is lower by $37 to $1,516 an ounce while Silver is off by $2 to $35 an ounce.

As far as the market, the Dow is lower by 147 points to 11,962 while the S&P 500 is showing a decline of 14 points to 1,273. The Nasdaq is down 7 points to 2,662. We are close to getting a breakout or breakdown and our feeling is the market heads lower into the end of June. However, if current support levels hold then we will remain stock in the middle of a trading range. We have some action in our put option trades so let’s get to the updates. Subscribers, check the Members Area for our latest comments.

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One Step Forward, Two Steps Backwards

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