The stock market dropped early on a strong Dollar but made its way back to the flat line by mid day. All eyes appear to be on the Non Farm Payrolls Report and Unemployment Report tomorrow at 8:30am ET. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.38, – 0.11 while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.34, +0.16. The markets fell sharply early in the morning session as the Dollar shot higher. However, the light volume and a small pull back in the Dollar helped the markets move to the flat line. The Federal Reserve bought more treasuries as well, which is their way of propping the markets up using QE-2.
Even as earnings have been mixed, Egypt continues to be a mess and the markets look tired, they have yet to pull back sharply off their mega rally and 52 week highs. The Federal Reserve continue to utilize the artificial asset bubble technique to keep the economy afloat.
Gareth Soloway
InTheMoneyStocks.com
