The Dow Jones Industrial Average (INDEXDJX:.DJI) is on pace to erase yesterday's modest loss, with futures pointed higher ahead of the bell. The housing sector should garner the lion's share of attention today, with the FHFA home price index, new home sales, and the S&P/Case-Shiller home price index all due out this morning. This trio of reports follows last week's Federal Open Market Committee (FOMC) meeting, in which the central bank noted that recovery in the housing sector in January "remained slow." After tonight's close, Philadelphia Fed President Charles Plosser and Atlanta Fed President Dennis Lockhart are both slated to take the podium.
Meanwhile, "The market saw a nasty sell-off on the open yesterday, but the S&P 500 Index (SPX) bounced right at 1,850 -- a level that has been significant many times over the past few weeks," noted Schaeffer's Senior Trading Analyst Bryan Sapp. "Going forward, that will be the key support area to hold, with 1,880 as resistance overhead."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are more than 64 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,230,940 call contracts traded on Monday, compared to 807,877 put contracts. The resultant single-session put/call ratio jumped to 0.66, while the 21-day moving average remained at 0.59.
From the Trading Floor
"Looking at the market index levels on Monday, you wouldn't have thought that action in stocks was all that bad," continued Sapp. "However, many technology names were slaughtered yesterday, along with various other momentum stocks. They did bounce pretty strongly intraday, though, which could be a sign that it was merely a shakeout of weak hands in those names. Stocks such as Tesla Motors Inc (NASDAQ:TSLA), Netflix, Inc. (NASDAQ:NFLX), 3D Systems Corporation (NYSE:DDD), and Herbalife Ltd. (NYSE:HLF) have been pretty good proxies for market-risk appetite. So long as those names can hold the lows we saw in them yesterday, I would take that as a sign that markets are poised to make new highs in the near future."
Currencies and Commodities
Earnings and Economic Data
The FHFA housing price index, new home sales, the S&P/Case-Shiller home price index, and consumer confidence are slated for release today. Stepping up to the earnings plate are Carnival (CCL), PVH Corp (PVH), and Walgreen (WAG).
The Case for Big Moves in IWM and QQQ
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