The Dow Jones Industrial Average (INDEXDJX:.DJI) is eyeing a triple-digit drop right out of the gate, as we enter day seven of the government shutdown. Adding to investors' unease is the U.S. borrowing limit, which is set to max out on Oct. 17. Should Congress fail to reach an agreement, the country may begin to default on its debts.
Meanwhile, "The S&P 500 Index (SPX) was trapped in the 1,670-1,695 range in intraday trading all last week," noted Schaeffer's Senior Trading Analyst Bryan Sapp. "This action has been really volatile, but the bottom-line move has been minimal over the last several days. Keep a close eye on this range going forward, as a break on either side will likely lead to a bigger move."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are nearly 116 points south of breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,027,808 call contracts traded on Friday, compared to 605,763 put contracts. The resultant single-session put/call ratio dropped to 0.59, while the 21-day moving average rose to 0.60.
From the Trading Floor
"The CBOE Volatility Index (VIX) made fresh three-month highs on Thursday," continued Sapp. "Despite markets being slightly off all-time highs, fear is certainly growing. While the VIX can sometimes be predictive, it is typically best to fade the 'protection trade.'"
Currencies and Commodities
Earnings and Economic Data
The week's economic calendar kicks off with consumer credit data. There are no notable earnings reports scheduled for today.
9 Levels to Watch for Apple Inc.
Featured Partners: AOL DailyFinance
© 2013 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: email@example.com
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.