Today’s stock market action has been very volatile intra-day. However, the overall trading volume has been on the light side today as many traders and investors await the government job report tomorrow. Usually when the trading volume is this light the major stock market indexes will trade sharply higher, however, today the U.S. Dollar Index is soaring higher and this could be putting some pressure on the inflation rally.
You see when the dollar rallies higher most commodities will trade lower. Most all commodities trade in U.S. Dollars, therefore, a stronger dollar will deflate commodity prices. Oil, gold, silver, copper, and many other soft commodities are declining today. It is difficult to see a major decline ahead of tomorrow’s job report. The trading range for the SPDR S&P 500 Trust(NYSE:SPY) is between the $126.85 level and the $127.60 area.
Nicholas Santiago
InTheMoneyStocks.com
