tradeMONSTER: Trade free for 90 days

Options Trading News

June 11, 2013  Tue 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stock futures are lower today as buyers pause following a sharp rally late last week.

S&P 500 futures are down almost 1 percent, while indexes are lower by almost 2 percent in Europe. Both have been climbing from earlier lows in the last hour. China and Japan declined by more than a full percentage point in the overnight session.

Some attribute the drop to the Bank of Japan failing to announce measures against market volatility, but the more likely explanation is that the S&P 500 had stalled at the same 1640 area that was support in late May and has now become temporary resistance.

We appear to be entering a phase of consolidation after seven months of straight gains, with every major index except the Nasdaq 100 in record territory. A lot of good news has already been priced into stocks, and there are few known catalysts in the near term with the potential to push the market out of its current range.

One unknown today is a court hearing in Germany, featuring challenges to the European Central Bank's bond-buying program. The market, so far, expects the judges to side with the ECB. After that, the next big event is the release of U.S. retail sales on Thursday morning.

Commodities are following the bearish pattern as oil, copper, and silver fall more than 1 percent. Gold is also down almost a full percentage point, and agricultural products are mixed. The tone is similar in foreign-exchange markets, with the safe-haven Japanese yen up almost 2 percent against most other major currencies. The Australian and Canadian dollars are also tanking against the greenback.

Despite the moves, however, the yen is well below its highs from last week and appears to be consolidating. That's important because declines in the Japanese currency have been a key factor supporting risk appetite globally all year.

In company-specific news, Lululemon Athletica is down 13 percent after CEO Christine Day announced she was leaving the company. The drop comes despite quarterly results beating expectations.

Corinthian Colleges fell more than 20 percent after revealing it was under investigation by the Securities and Exchange Commission, which is seeking information on student recruitment, attendance, completion, and placement.

Pharmacy-benefits company Catamaran, on the other hand, is rallying 14 percent after winning a key contract with Cigna. 
Share this article with your friends


Related Stories

SPX

Cramer: Tune out Fed naysayers

December 19, 2014

When we have inflation, the data-dependent Fed will switch. Until then, what's the point? Promote havoc? Slow down growth to make it so the hiring binge is over?

SPX

Stocks inch higher following rallies

December 19, 2014

S&P 500 futures are up 0.2 percent but below their highs earlier in the morning. Asia surged overnight, led by gains of about 2 percent in Tokyo and Shanghai. Oil is holding its ground as well.

SPX

Earnings reports fill quiet calendar

December 19, 2014

The only items today are quarterly results from CarMax, Carnival, and BlackBerry. Several events are packed into Tuesday and Wednesday because of next week's Christmas holiday.

SPX

Stocks rally again on Europe, oil

December 18, 2014

S&P 500 futures are up more than 1 percent, while most European indexes are gaining 2 percent. Asia was mostly higher overnight, led by a 2 percent gain in Tokyo.

SPX

Jobless claims, Philly Fed on tap

December 18, 2014

Today's economic calendar features initial jobless claims and the Philadelphia Federal Reserve's regional-activity index.

tradeMONSTER: Trade free for 90 days

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER