The Dow Jones Industrial Average (INDEXDJX:DJI) is in the green this morning, as traders shrug off the International Monetary Fund's (IMF) downwardly revised 2014 domestic growth outlook and escalating violence in Iraq. Instead, Wall Street has turned its attention to a round of economic reports due today; specifically, the consumer price index (CPI) and core CPI, as well as housing starts will be released at 8:30 a.m. ET. Additionally, the Federal Open Market Committee (FOMC) kicks off its two-day meeting. Ahead of these events, futures on the blue-chip barometer are sitting 20 points above breakeven.
Meanwhile, "I continue to watch the Russell 2000 Index (RUT) for signs that stocks are poised to make new highs," said Schaeffer's Senior Trading Analyst Bryan Sapp. "On a relative basis, we've seen small-caps start to perk up in the past two weeks, which is good if you're bullish. Specifically, I'm keeping an eye on 1,150-1,155 on the RUT for support, with 1,200 as overhead resistance."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are roughly 20 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 993,144 call contracts traded on Monday, compared to 473,976 put contracts. The resultant single-session put/call ratio plunged to 0.48, while the 21-day moving average remained at 0.55.
From the Trading Floor
"All eyes continue to be focused on the events transpiring in Iraq -- and volatility has seen a significant spike since the turmoil began," continued Sapp. "I would keep a close eye on the oil market, as a significant spike due to the situation in Iraq could have a dramatic effect on the global economy."
Currencies and Commodities
Earnings and Economic Data
The latest housing starts data, plus the CPI and core CPI, will come out today. Adobe Systems (ADBE), Bob Evans Farms (BOBE), FactSet Research Systems (FDS), La-Z-Boy (LZB), and Yingli Green Energy (YGE) will announce quarterly earnings.
The Case for Big Moves in IWM and QQQ
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