Welcome to the intraday discussion thread for the trading week beginning June 4th.
It looks like the sentiment is becoming negative enough that we may get some bounce next week if there are no more negative surprises in store.
The bullish scenario in my chart here shows a possible 5 wave down completing, the next move will be a bounce higher to test some resistance levels.
Gold and gold miners had a good rally, but still way within that wedge. If that support is lost, this could flush lower, so be cautious.
Weakest Job Growth In A Year
Economic Calendar for the week:
As reality starts to set in, will the Bernanke put come back and give this market the helping hand yet again?
A confidence-crushing May jobs report has turned market talk back to the idea of more Federal Reserve easing. But the question is: How much more can the central bank do with Treasury yields at record lows.
Friday’s employment report showed that just 69,000 jobs were created in last month, less than half of what Wall Street expected. The unemployment rate crept up to 8.2 percent from 8.1.
On top of that, revisions made for March and April erased 49,000 jobs from those two months.
“This alone doesn’t bring the Fed back in—but this combined with Europe brings the Fed back in,” said Mesirow Financial chief economist Diane Swonk. “The Fed needs to keep its powder dry for a potential financial crisis (from Europe), and that possibility just went up. This underscores that we’re not an island.” » Read More