This morning, the S&P 500 Index futures (ES U1) are trading higher by 9.00 points to 1207.75 per contract. The catalyst for the bounce this morning was the better than expected July non-farm payroll report. The positive job report may have come a little too late considering yesterday’s massive stock market decline. The problems in the European Union seem to be escalating everyday and they will not be solved anytime soon. The European Central Bank will likely have comments throughout the session to try and calm the markets. Traders and investors will have to watch for a typical stock market fade as it seems everything is being sold at this time.
Gold and silver have been the one area that has held up well over the past ten trading sessions. Yesterday, gold and silver came under institutional selling pressure. It is important to note that the one safe haven trade could decline if the major stock indexes begin to face a deflationary tailspin. This morning before the opening bell, the SPDR Gold Shares (NYSE:GLD) are trading higher by 0.51 cents to $161.15 a share. Traders should watch gold closely today as it is likely to be very volatile.