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Dow Jones Industrial Average Slips After Record Closing High

Why the SPY's $189 level is the one to watch

by 5/1/2014 8:11:47 AM
Stocks quoted in this article:

After closing at a fresh record peak on Wednesday, the Dow Jones Industrial Average (INDEXDJX:DJI) is sitting slightly below breakeven this morning. "As expected, the Federal Reserve announced its policy statement yesterday afternoon, cutting back its monthly asset purchases by another $10 billion to $45 billion," noted Schaeffer's Senior Options Strategist Tony Venosa, CMT. "The markets responded favorably, as most of the indexes closed near their respective highs." The central bank will remain in focus today, with Fed Chair Janet Yellen slated to speak at 8:30 a.m. ET. Additionally, traders will have their hands full with a number of economic reports -- including weekly jobless claims, which come ahead of tomorrow's all-important nonfarm payrolls report.

Elsewhere, "With the S&P 500 Index (SPX) in striking distance of its all-time highs, watch the SPDR S&P 500 ETF Trust (SPY) $189 level," directs Venosa. "Four times as many calls than puts reside here in the weekly series of options, which expires tomorrow. This could represent a major roadblock in the near term."

Plus, our Trading Topic of the Week -- Tips to Trade Like the Pros: Develop a healthy sense of skepticism. There's no need to be a knee-jerk cynic, but it certainly pays to be wary of "hot tips" and "sure things" -- no matter where they come from.

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 about 7 points below breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,125,769 call contracts traded on Wednesday, compared to 608,590 put contracts. The resultant single-session put/call ratio fell to 0.54, while the 21-day moving average remained at 0.60.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is unchanged ahead of the bell, with the greenback last seen at 79.48.
  • Elsewhere, crude oil is looking to extend its recent trek south of the century mark, with the commodity down 0.6% at $99.17 per barrel.
  • Gold is pointed lower, as well, with the malleable metal shedding 0.9% in pre-market trading to linger near $1,284.10 an ounce.
Currencies and commodities

Earnings and Economic Data

Scheduled for today are motor vehicle sales for April, weekly jobless claims, personal income and expenses, the purchasing managers manufacturing index (PMI), the ISM manufacturing index, and construction spending. Entering the earnings confessional are Exxon Mobil (XOM), Akamai Technologies (AKAM), Alpha Natural Resources (ANR), Avon Products (AVP), BJ's Restaurants (BJRI), Beazer Homes (BZH), Clorox (CLX), CME Group (CME), ConocoPhillips (COP), Expedia (EXPE), Goldcorp (GG), Kellogg (K), Kraft Foods (KRFT), L-3 Communications (LLL), LinkedIn (LNKD), MasterCard (MA), Motorola Solutions (MSI), NutriSystem (NTRI), OpenTable (OPEN), Steven Madden (SHOO), T-Mobile US (TMUS), Teva Pharmaceuticals (TEVA), Viacom (VIAB), Walter Energy (WLT), Western Union (WU), and World Wrestling Entertainment (WWE).

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