"The Dow Jones Industrial Average (INDEXDJX:.DJI) rallied strongly for a second straight day in front of today's Federal Open Market Committee (FOMC) policy statement, which is set for release at 2 p.m. ET," said Schaeffer's Senior Options Strategist Tony Venosa, CMT. This morning, futures on the DJI have pushed slightly higher, as investors await the outcome of the FOMC meeting and subsequent press conference with Fed chief Janet Yellen. This will be her first as head of the central bank. Economists are largely projecting the Fed to continue its current tapering plan, and revise its policy of tying interest rates to a 6.5% unemployment rate.
Meanwhile, Venosa says that he's "keeping an eye on the $189 level on the SPDR S&P 500 ETF Trust (SPY). Peak call open interest for the March series -- which expires on Friday -- is located here."
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 22 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,044,200 call contracts traded on Tuesday, compared to 569,299 put contracts. The resultant single-session put/call ratio dropped to 0.55, while the 21-day moving average stayed at 0.59.
Currencies and Commodities
Earnings and Economic Data
Weekly crude inventories and the latest policy decision from the FOMC are due out today. Also, Fed Chair Janet Yellen will hold a press conference at 2:30 p.m. ET. FedEx (FDX), Guess Inc (GES), General Mills (GIS), KB Home (KBH), Jabil Circuit (JBL), and Vera Bradley (VRA) will report earnings.
The Case for Big Moves in IWM and QQQ
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