By Nicholas Santiago on June 3rd, 2010 3:40pm Eastern Time
Today the major indexes such as the Dow Jones Industrial Average and the S&P 500 Index have traded all over the map intra-day. The DJIA was higher by over 60.00 points before reversing lower during the lunch hour to go negative by 50.00 points. The index is now positive once again and only 40.00 points from the intra-day high. So what is going here? Simply put, the institutional money is jockeying for position and looking to shake out the small S&P e-mini trader. Days like today when the volume is light ahead of a major economic report trade only the best patterns and support/resistance levels. While it looks like a lot is going on in the market it is just noise and chaos on the charts.
Tomorrow is the highly anticipated government jobs report for the month of May. Most fundamental traders such as mutual fund managers will not get in front of this major report. That is why the volume is so light today. Yesterday President Obama and Vice President Joe Biden mentioned that the job report would be very good tomorrow causing a huge rally in the market yesterday. Today is a pause day ahead of that report with a choppiness lacking conviction. Goldman Sachs Group Inc (NYSE:GS) also increased their jobs number estimate to 600k jobs created from their prior estimate of 500k. Therefore, a very good job number is now being factored in for tomorrow. It will be interesting to see if the May job report is a non-event. In any case there are still a lot of geopolitical problems around the world especially as the European Union problems continue to grow. Sometimes the best move in this environment is simply no move.
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