SILVER

The silver market is quiet this morning after yesterday's steep sell-off, as the markets in general have gotten quiet ahead of this morning's economic reports. Yesterday May silver fell to its lowest level since January after breaking through some technical support. Silver has fallen victim to the same outside influences as gold, as the recent brightening of the economic skies has boosted the equity markets and pressured safe havens like the precious metals. After so much positive economic news recently and the lowering of inflationary expectations, the market may need more of the same to stay on its current course. Any disappointment in that regard could spark some short covering in silver today. Comex Silver Stocks were 130.780 million ounces down 132,054. May silver broke through key trendline support early yesterday, sparking heavy selling and confirming that the major trend is still down. Overnight, the market traded both sides of unchanged and seemed to be finding support at $31.95. If the market sets on a short-covering mode today, we would look for initial resistance at $32.50 and then up at $33.45.