The Dow Jones Industrial Average (INDEXDJX:.DJI) is positioned to break its two-day losing streak, following dovish comments made by Chinese Premier Li Keqiang. Back on the homefront, a round of economic reports could also prompt some movement in the markets. Specifically, personal income and spending data and the Thomson Reuters/University of Michigan's final consumer sentiment report for March are both due out this morning. Additionally, Kansas City Federal Reserve President Esther George is slated to deliver a speech at 1:15 p.m. ET.
Looking at the charts, Schaeffer's Senior Trading Analyst Bryan Sapp notes, "The S&P 500 Index (SPX) continues to trade in a volatile, whippy fashion, but it has yet to do much technical damage to the bull trend. Yesterday morning's move lower was contained by the mid-March lows near 1,840, so I would continue to respect the bull market until that level gives way to lower prices. However, weakness in technology continues, which could be an issue for the bulls. Wednesday's break of the 50-day moving average on the Nasdaq-100 Index (NDX) was confirmed by yet another push lower."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 33 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,245,466 call contracts traded on Thursday, compared to 712,028 put contracts. The resultant single-session put/call ratio fell to 0.57, while the 21-day moving average stayed at 0.59.
From the Trading Floor
"The new American Association of Individual Investors (AAII) poll surfaced yesterday, and the percentage of bullish investors is currently at a two-month low," said Sapp. "There are finally signs emerging that many of the recent bulls have capitulated on their stance. This is a positive sign for contrarian bulls."
Currencies and Commodities
Earnings and Economic Data
The latest data on personal income and outlays, plus Thomson Reuters/University of Michigan's final consumer sentiment report for March, will hit the Street today. Elsewhere, earnings reports from BlackBerry (BBRY) and Finish Line (FINL) are due out.
The Case for Big Moves in IWM and QQQ
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