OptionsHouse

Options Trading News

May 23, 2013  Thu 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling today as a global selloff hits equity markets.

S&P 500 futures are down almost 1 percent, while European indexes are lower by about 2 percent. The real declines came in Asia, where Japan's Nikkei plunged 7 percent and Hong Kong shed 2.5 percent.

The weakness follows a weak purchasing-managers report from China, which showed a contraction in the country's manufacturing sector for the first time in seven months. Nerves were also on edge yesterday when comments from Federal Reserve officials in the United States suggested that the central bank will slow monetary stimulus.

The S&P 500 had traded to a new record high earlier in yesterday's session, but then reversed and closed lower--resulting in a "shooting star" chart pattern that some technicians consider a sign of a reversal. Even before the drop, internals of the market showed slowing momentum as transports lagged and health care led to the upside.

The question now facing investors is how much of a pullback to expect before putting money to work again. (Support could be found around between 1627 and 1633 on the S&P 500, a consolidation range from earlier this month.)

Initial jobless claims at 8:30 a.m. ET and new home sales at 10 a.m. could affect sentiment as well.

Commodities are mostly bearish, led by a 2 percent drop for copper and a 1 percent decline for oil. Gold and agricultural foodstuffs, however, are higher.

The main trend in the foreign-exchange market is yen strength across the board as the Japanese currency rebounds from months of weakness. But the euro is modestly higher against the U.S. dollar, which is potentially bullish.

In company-specific news, technology stalwart Hewlett-Packard is indicated higher by 12 percent after reporting strong profit and raising its guidance. Pacific Sunwear of California also rallied after is revenue beat forecasts and management issued a strong forecast.
Share this article with your friends


Related Stories

SPX

Stocks drifting at bottom of range

March 27, 2015

S&P 500 futures are off 0.1 percent, while European markets are mostly higher. Asia was mixed overnight. Oil and metals are under pressure as the euro surrenders some of its recent gains.

SPX

Revised GDP, Yellen lead calendar

March 27, 2015

The final reading of fourth-quarter gross domestic product is due at 8:30 a.m. ET, and Federal Reserve Chair Janet Yellen is slated to deliver a speech at 3:45 p.m. ET.

SPX

Stocks fall amid Yemen airstrikes

March 26, 2015

S&P 500 futures are down 0.7 percent, while the Nasdaq remained weaker with a drop of 1 percent. European indexes slid 1-2 percent, and Asia was broadly lower overnight. Oil and the yen are surging.

SPX

Jobless claims lead quiet calendar

March 26, 2015

The report at 8:30 a.m. ET is expected to show that 290,000 Americans sought unemployment benefits for the first time, down slightly from 291,000 the previous week.

SPX

Stocks edge lower, drifting in range

March 25, 2015

S&P 500 futures are down 0.1 percent as investors wait for the next catalyst. European stocks are lower as well, while Asia was little-changed overnight.

Invest Like a Monster - San Diego: June 26-27

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »