Sideway Action

4/3/08

Dow is buckle the negative note but only close slightly in green of 20 points. Traders and investors are waiting the bet of tomorrow big economic non-farm payroll number (estimate -60k). The true market sentiment would disclose after the number announced. If the number is much worse than the estimate ( ex. -100k or above ), market may drop 200 points or more. If the number is not far from estimate, it may provide one more sideway action trading day or breakout 12700 mark.
Technically, major indexes are formed another Doji japanese candlestick pattern and still not confirm our uptrend has officially ended.

The US currency traders and Fed monetary policy makers both are looking very close to this non-farm payroll economic figure. For last 3 recession( Year 1980-1982, 1990-1991,2001-2003), that number has shown average 13 consecutive months of job losses and the average biggest one month job data was -300k. But it may produce a bounce here but it would make more serious deterioration after this March figure. So, hold on and see.