Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are wallowing in the red this morning, as investors digest the latest round of earnings to hit the Street. Amazon.com, Inc. (NASDAQ:AMZN) and Mattel, Inc. (NASDAQ:MAT) are both pointed lower following their results; however, Google Inc (NASDAQ:GOOG), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Zynga Inc (NASDAQ:ZNGA) are all positioned higher in the wake of their quarterly reports. On the economic front, personal income and spending figures, the Chicago purchasing managers index (PMI), and the final Thomson Reuters/University of Michigan consumer sentiment reading for January are due out.
"The 1,770 level on the S&P 500 Index (SPX) I mentioned earlier this week has held, and it looks like it could provide some support for the market," maintained Schaeffer's Senior Trading Analyst Bryan Sapp. "Meanwhile, the index rallied right up near the round-number 1,800 level yesterday, but retreated on an intraday basis. Going forward, the bulls will want to see this area taken out, as it could be a sign that the market is ready to resume its longer-term uptrend."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are nearly 178 points below breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,345,559 call contracts traded on Thursday, compared to 726,483 put contracts. The resultant single-session put/call ratio fell to 0.54, while the 21-day moving average stayed at 0.55.
From the Trading Floor
"The new American Association of Individual Investors sentiment poll that surfaced yesterday showed more bears than bulls," noted Sapp. "It's been about six months since that last occurred, and is yet another sign of disbelief toward the market. Seemingly, every correction -- the S&P 500 is only about 3% off its all-time highs -- brings bears out in droves, and this bodes well for bulls going forward."
Currencies and Commodities
Earnings and Economic Data
The week closes out with personal income and spending figures, the Chicago PMI, and the final Thomson Reuters/University of Michigan consumer sentiment reading for January. The earnings docket includes quarterly reports from Chevron (CVX), Legg Mason (LM), MasterCard (MA), MAT, Mead Johnson Nutrition (MJN), Tyco International (TYC), Tyson Foods (TSN), and Weyerhaeuser (WY).
The Case for Big Moves in IWM and QQQ
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