The Dow Jones Industrial Average (INDEXDJX:DJI) is signaling a modest bounce this morning, after the blue-chip barometer surrendered 2.4% in last week's trading. On the homefront, the latest retail sales numbers and earnings results from financial firm Citigroup Inc (NYSE:C) will be in focus. However, traders will also be keeping one eye trained overseas, after pro-Russian separatists over the weekend seized control of the Ukranian city of Slaviansk. In response, acting Ukraine president Oleksander Turchinov issued a deadline for the rebels to leave the area, which has since expired.
Back to the charts, "There are some very key support levels near current market prices," said Schaeffer's Senior Trading Analyst Bryan Sapp. "Bulls will definitely want to see these hold, as a break could signify a change in the overall trend. These noteworthy areas are 1,800 on the S&P 500 Index (SPX), 4,000 on the Nasdaq Composite (COMP), and 1,100 on the Russell 2000 Index (RUT) -- which coincides with the RUT's 200-day moving average. This trendline hasn't been tested since late 2012."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are about 35 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,085,976 call contracts traded on Friday, compared to 814,735 put contracts. The resultant single-session put/call ratio rose to 0.75, while the 21-day moving average edged higher to 0.58.
From the Trading Floor
"The CBOE Volatility Index (VIX) is finally starting to show some fear in the market," continued Sapp. "It peaked on Friday near 18, which is around the former highs from mid-March. It seems that we're very close to a 'boom or bust' area in markets, as many indexes are hovering around major support -- and fear has seen a significant uptick. Going forward, I would expect the next market move to be dramatic in either direction."
Currencies and Commodities
Earnings and Economic Data
Kicking off the week are retail sales and business inventories. Elsewhere, C will release quarterly earnings.
The Case for Big Moves in IWM and QQQ
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