Earlier today, the major stock indexes were trading sharply lower. The highly followed SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) was trading down to the $122.82 level. This afternoon, the DIA is rallying off of the lows to to 124.12 a share. This is still a very good intra-day bounce especially if you happen to be a scalp trader. 

Once again, the U.S. Dollar Index (DX-M2) is declining lower after the opening bell rings at the New York Stock Exchange. This happens very often when the major stock indexes are breaking lower. You see, when the dollar declines everything in the stock and commodity markets will inflate and trade higher. Just the opposite will happen when the U.S.

The markets opened nicely higher only to get slammed once again. Last week the markets saw their largest decline of 2012. The down cycle called by Chief Market Strategists at InTheMoneyStocks is fully in play. European worries continue to increase and technology has seen a sharp pull back from its recent highs.

This afternoon, spot gold is surging higher by $27.00 to $1689.00 an ounce. The precious metal took off to the upside after the Ben Bernanke speech this morning which stated that the Federal Reserve would continue with further accommodating policies. Gold is one of the best indicators that inflation is being created.