SILVER

At least in the early action today May silver has remained well within yesterday's trading range. Somewhat surprisingly silver and other physical commodity markets haven't seen a definitive lift off rumors that the Chinese might be poised to reduce their reserve rate requirements. At least in the early going today, equity markets were showing positive action and that has in turn allowed May silver to climb back into positive ground. However, a noted jump in Spanish debt yields could be holding back markets like silver, as a return to European contagion fears has applied pressure to silver prices in the recent past. On the other hand, silver isn't exactly facing a return to a fully entrenched risk-on environment this morning as some traders and investors seem to need further evidence of entrenched US growth ahead just to countervail the disappointment of the last US payroll report reading and more specifically to countervail the idea that the US Fed is now on hold. Therefore some silver bulls today might want to see signs from the Fed Beige book later today, that the Fed could easily shift back into a supportive stance. As in gold, the silver market will probably take a lot of direction from US stocks and from comments from the Fed's Lockhart early in the session. Comex Silver Stocks were 139.611 million ounces down 448,503 ounces. Silver stocks have increased in 13 of the last 20 days. At least in the early trade today, initial support is seen in the May silver contract at $31.55, with more significant support pegged at $31.47. In order to completely throw off the pattern of lower highs in place since late February, might require a rise back above $32.35 today in the May contract but that resistance line falls down to $32.00 on Friday morning. For now, silver remains a physical commodity market in need of fresh easing promises, or distinctly positive action in equities. To turn the technical table on the bear camp this morning, might require a rise back above $31.92 in the May silver contract.