Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Markets Stall At Key $113.00 Level On SPY As Dollar Jumps

After jumping up and down early in the day, the markets are floating higher on extreme light volume during the noon hour.  The key today was the ADP Private Sector Employment Report which showed a gain of 42,000 jobs.  This was in line with estimates but pushed the market slightly higher as it gave traders some relief ahead of the Friday Non Farm Payrolls Report.  On the chart below, note how the SPDR S&P 500 ETF (NYSE:SPY) has floated into the $113.00 level twice today, each time pulling back.  While this level is resistance, the more it hits the weaker it becomes and is likely to break if volume continues to drop.  The next spot is the $113.25 level.


RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2010 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd

The dollar is in play today as it gets a big bounce after major declines in the previous month.  Normally this would drive the market lower but volume is way too light and all eyes are now on the Friday Non Farm Payrolls and Unemployment Report.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is jumping off major support on the daily here after crashing through the 200 moving average just days ago.  Note the chart below.


RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2010 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd
 

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com