The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to continue its slow churn higher this morning. "The next two days are very important for the market," pointed out Schaeffer's Senior Trading Analyst Bryan Sapp. "Today will be the European Central Bank (ECB) monetary policy announcement, while Friday is the May jobs report. It's possible that we could see volatility pick up into the weekend, and we'll likely see some significant price moves after the recent lull. I would suspect that if we get a big move one way or the other, that sentiment will likely shift with price."
Shortly before 8 a.m. ET, the ECB announced it would cut its key lending rate to 0.15% from 0.25%, and lowered its deposit rate to negative 0.1% from 0%. Looking ahead, ECB President Mario Draghi is slated to take the podium at 8:30 a.m. ET. Ahead of this event, futures on the DJI were more than 34 points above breakeven -- putting the 30-stock index within striking distance of record intraday-high territory.
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are more than 34 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,145,475 call contracts traded on Wednesday, compared to 493,350 put contracts. The resultant single-session put/call ratio plunged to 0.43, while the 21-day moving average fell to 0.61.
From the Trading Floor
"Given its recent strength and resurgent comeback, I'm keeping a close eye on Apple Inc. around the $650 level," continued Sapp. "The stock has gone up seemingly every day over the past few weeks, and it certainly appears to be pulling the market higher with it. AAPL is going to start trading on a split-adjusted basis next week, so it's likely that many people are buying ahead of that -- anticipating a jump on that repricing."
Currencies and Commodities
Earnings and Economic Data
Weekly jobless claims will be announced today. Analogic Corporation (ALOG), Ciena Corporation (CIEN), Diamond Foods (DMND), J.M. Smucker (SJM), Joy Global (JOY), Thor Industries (THO), Titan Machinery (TITN), UTi Worldwide (UTIW), Vail Resorts (MTN), Vera Bradley (VRA), and VeriFone Systems (PAY) will have their turns under the earnings spotlight.
The Case for Big Moves in IWM and QQQ
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