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Dow Jones Industrial Average Looks to Follow Global Markets Into the Green

China's Shanghai Composite soared on proposed market reforms

by 5/12/2014 8:14:46 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to follow its overseas counterparts into the green today, as traders digest market-reform measures from China and election results from Eastern Ukraine. Stateside, the treasury budget is the sole economic data point on the day's docket; however, an afternoon speech from Philadelphia Fed President Charles Plosser should garner a fair share of attention. Against this backdrop, futures on the DJI are up roughly 46 points, as the blue-chip barometer looks toward another record closing peak.

Elsewhere on the charts, Schaeffer's Senior Trading Analyst Bryan Sapp says, "The same critical levels remain in play, as the market was one trap after the next last week. Every time the recent range appears as if it's going to break, we get a mean reversion back inside of it. I continue to watch 1,100 on the Russell 2000 Index (RUT) for support and its 200-day moving average as resistance. Also, the 1,880 level on the S&P 500 Index (SPX) remains a major area of interest."

Plus, our Trading Topic of the Week -- 5 Ways to Interpret Short Interest: Consider the short-to-float ratio. By checking out a stock's short-to-float ratio, you can quickly gauge how many traders are betting on the shares to drop.

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 981,880 call contracts traded on Friday, compared to 710,647 put contracts. The resultant single-session put/call ratio soared to 0.72, while the 21-day moving average remained at 0.62.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"The new American Association of Individual Investors (AAII) report surfaced last Thursday, and the number of 'neutral' respondents is at the highest level seen in a year," continued Sapp. "The recent choppy market has likely confused many traders, and pushed them into a general sense of disinterest toward stocks. This could lead to an outsized move in the near future, as a break of the recent range will likely bring many people off the sidelines."

Currencies and Commodities

  • The U.S. dollar index is flirting with a 0.1% drop ahead of the bell, with the currency last seen at 79.83.
  • Elsewhere, crude oil is eyeing a move back above the century mark, with the commodity up 0.5% at $100.45 per barrel.
  • Gold is higher, as well, with the malleable metal tacking on 0.5% in pre-market trading to hover around $1,294.60 an ounce.
Currencies and commodities

Earnings and Economic Data

The week kicks off with the U.S. Treasury budget for April. Gogo (GOGO), McKesson (MCK), and Rackspace (RAX) will release quarterly earnings.

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