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The Dow Jones Industrial Average (INDEXDJX:.DJI) is poised to bounce back after hitting a five-week low yesterday, with futures higher ahead of the bell. The economic calendar is relatively light, with the producer price index (PPI) and core PPI the sole data points on the docket. However, taper talk should rule the day, after the House of Representatives passed a two-year budget plan last night. The bill will now head to the Senate for a vote next week.

On the charts, Schaeffer's Senior Trading Analyst Bryan Sapp noted, "The intraday price action on the S&P 500 Index (SPX) was interesting yesterday. It was very weak early in the day, but found strong buyers near lunchtime. The lows were near 1,772, so I would look for the 1,770-1,772 area to provide some support going forward. The 1,780 level previously served as a foothold, so a move north of here could potentially signal a rally back up to 1,800."

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 46 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,070,098 call contracts traded on Thursday, compared to 563,694 put contracts. The resultant single-session put/call ratio fell to 0.53, while the 21-day moving average stayed at 0.57.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"Bullish sentiment continues to be very high, but the short-term sell-off that we saw this week likely shook a few bulls out," continued Sapp. "The new National Association of Active Investment Managers (NAAIM) report that surfaced yesterday showed the third-highest reading ever, indicating fund managers have a very elevated level of exposure. So long as price action remains strong, however, this shouldn't be a major concern. If and when the markets significantly weaken, that could be a sign that these overexposed managers will have to sell some of their holdings, and this could have an amplifying effect on any potential sell-off."

Currencies and Commodities

  • The U.S dollar index has tacked on 0.2% ahead of the bell, with the currency lingering near 80.38.
  • Elsewhere, crude oil is on pace to erase Thursday's modest advance, with futures for the January contract down 0.5% at $97.31 per barrel.
  • Meanwhile, amid signs of rising demand, gold futures have added 0.5% in pre-market trading to hover around $1,231.20 an ounce.
Currencies and commodities

Earnings and Economic Data

Today's economic reports include the PPI and core PPI. There are no noteworthy earnings reports slated for release.

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