The Dow Jones Industrial Average (INDEXDJX:.DJI) is flirting with a more than 90-point pop this morning, as the blue-chip barometer tries to bounce back from last week's 2.4% drop. In today's session, investors will be keeping a cautious eye overseas, as Western diplomats react to Crimea's weekend referendum to join the Russian Federation. Meanwhile, back on the homefront, updates on factory activity, inflation, and housing are due out in the early half of the session.
On the charts, Schaeffer's Senior Trading Analyst Bryan Sapp has "a close eye on the NASDAQ-100 (NDX), as it's been the relative laggard since the beginning of the recent pullback. In fact, the NDX is off nearly 3% over the past seven trading days, and is trading beneath its lower Bollinger Band -- indicating an extreme oversold level. Going forward, bulls will want to see the index hold the 3,600 level, which is currently site of its 50-day moving average."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are more than 90 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,255,743 call contracts traded on Friday, compared to 864,258 put contracts. The resultant single-session put/call ratio arrived at 0.69, while the 21-day moving average edged up to 0.59.
From the Trading Floor
"CBOE Volatility Index (VIX) call volume was massive on Friday, indicating near-extreme fear in the market," continued Sapp. "In fact, the volume was the second highest seen all year. The biggest volume we saw was on Feb. 3, when markets made a significant bottom at the lows of the year. This excessive VIX call buying could be a sign that it's time to get long the market."
Currencies and Commodities
Earnings and Economic Data
Among the economic reports scheduled for today are the Empire State manufacturing survey, Treasury International Capital (TIC) data for January, industrial production and capacity utilization, and the NAHB housing market index. JA Solar Holdings (JASO) will release quarterly earnings.
The Case for Big Moves in IWM and QQQ
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