"Selling pressure sent the Dow Jones Industrial Average (INDEXDJX:DJI) lower on Wednesday, after the World Bank cut its 2014 global growth outlook to 2.8% from 3.2%," said Schaeffer's Senior Options Strategist Tony Venosa, CMT. "However, small-caps and housing names were the biggest laggards." In today's session, the blue-chip barometer is poised to bounce back from yesterday's triple-digit drubbing, with futures pointed modestly higher ahead of the bell. In focus will be retail sales figures for May, with economists predicting a slight improvement over April's 0.1% rise. Traders will keep a cautious eye trained overseas, though, after Islamic militants seized control of two of Iraq's major cities.
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are more than 31 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,047,813 call contracts traded on Wednesday, compared to 525,927 put contracts. The resultant single-session put/call ratio fell to 0.50, while the 21-day moving average edged lower to 0.57.
From the Trading Floor
"Through the remainder of the week, keep an eye on the 115.50 strike on the iShares Russell 2000 ETF (IWM)," continued Venosa. "Huge put open interest -- which expires at Friday's close -- resides here, and could help support the shares in the near term, and possibly create a tailwind as the contracts unwind."
Currencies and Commodities
Earnings and Economic Data
Weekly jobless claims, retail sales figures, import and export prices, and business inventories will be released today. Finisar (FNSR) and Lululemon Athletica (LULU) will enter the earnings confessional.
The Case for Big Moves in IWM and QQQ
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