Learn the trade here. Make it on tradeMONSTER

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 little-changed before Fed

September 17, 2014

S&P 500 futures are within a point of yesterday's close, and commodities are flat. Overseas markets are higher, led by gains of 1 percent in Italy, Hong Kong, and Korea.

SPX

Fed dominates economic docket

September 17, 2014

The central bank will issue its statement at 2 p.m. ET, followed by a press conference with chair Janet Yellen 30 minutes later.

SPX

Stocks inch lower before key events

September 16, 2014

S&P 500 futures are off 0.15 percent, while most of Europe is down about 0.4 percent. Asian markets fell sharply overnight, led by drops of 1.8 percent in Shanghai and 1.2 percent in Mumbai.

SPX

Inflation, German data on calendar

September 16, 2014

The first data comes early in the session, when Germany's Zew institute releases its economic-sentiment index. The Labor Department follows with its producer-price gauge for August at 8:30 a.m. ET.

SPX

Stocks slip before Fed, Scotland

September 15, 2014

Stocks are edging lower as investors prepare for the Federal Reserve's announcement and Scotland's independence vote later in the week.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER