The Dow Jones Industrial Average (INDEXDJX:DJI) is sitting slightly below breakeven ahead of the opening bell, with investors awaiting cues on earnings results from such big names as McDonald's Corporation (NYSE:MCD), Travelers Companies Inc (NYSE:TRV) and Comcast Corporation (NASDAQ:CMCSA). Also hitting the Street this morning is the latest data on existing home sales and the FHFA housing price index.
Elsewhere, "I'm keeping a close eye on the Russell 2000 Index (RUT) and how it reacts around the 1,140 level," commented Schaeffer's Senior Trading Analyst Bryan Sapp. "Small-caps have been a major laggard over the past two months, and the bounce we've seen in recent weeks looks very similar to the RUT's late-January bounce -- when 1,140 acted as resistance. A climb back above this technical level could be the catalyst to lift markets back near recent all-time highs."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are about 4 points below breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,068,453 call contracts traded on Monday, compared to 502,807 put contracts. The resultant single-session put/call ratio fell to 0.47, while the 21-day moving average dipped to 0.58.
From the Trading Floor
"I came across a poll by Bankrate.com, and it surveyed over 1,000 households and gauged their sentiment toward the stock market," noted Sapp. "According to the data, 73% are 'not more inclined to invest in stocks.' This is the third year in a row that we've seen such a reading, and the market has been on a tear. Sentiment polls such as these suggest that the 'pain trade' in stocks remains to the upside over the long term."
Currencies and Commodities
Earnings and Economic Data
Existing home sales data is scheduled for today, along with the FHFA housing price index. Stepping up to the earnings mic are AT&T (T), MCD, TRV, United Technologies (UTX), AK Steel (AKS), Arch Coal (ACI), CMCSA, Cree (CREE), Discover Financial Services (DFS), Gilead Sciences (GILD), Harley-Davidson (HOG), Illumina (ILMN), International Game Technology (IGT), Intuitive Surgical (ISRG), Juniper Networks (JNPR), Lockheed Martin (LMT), VMware (VMW), Xerox (XRX), and Yum! Brands (YUM).
The Case for Big Moves in IWM and QQQ
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