The major stock markets indexes have reversed and plummeted lower after the weak ISM report. All of the leading indexes are now trading lower on the trading session after starting the morning sharply higher. There are a few areas that have bounced higher since the stock market declined around 10:00 am EST and they are gold, silver and the U.S. Dollar Index.
The highly followed and traded SPDR Gold Shares (NYSE:GLD) started the morning trading as low $156.78 a share. Since that early morning low the GLD is trading at $158.16 a share, this is quite a rebound from the open. Traders should watch for intra-day resistance around the $159.00 area.
The iShares Trust (NYSE:SLV) traded down as low as $38.03 a share after the opening bell rang at the New York Stock Exchange. The SLV has bounced higher since that low pivot and is now trading at $38.60 a share. Traders should watch for intra-day resistance around the $40.00 area.
The U.S. Dollar Index futures (DX U1) have soared sharply higher by 0.40 cents since the opening bell at 9:30 am EST. As we all are accustomed to seeing, when the U.S. Dollar Index rallies higher the major stock indexes will usually decline and deflate lower. Traders should watch for some minor intra-day resistance around the $74.50 area. Traders can also follow the U.S. Dollar Index by looking at the PowerShares DB US Dollar Index Bullish (NYSE:UUP).