Same old levels as yesterday so not much to report there. We're still watching those Major Breakout levels to see if they can be re-taken across the board and the Nas is still way off at 2,683 and the NYSE has also gone red with the Dow barely holding on yesterday and likely a bit below at the open.
There was, however, a massive spike up in the futures that didn't stick - well over 50 Dow points so I'd say they are going to try something and that may have been a little computer test. As JJFlash notes - we're finishing the week off with a boat-load of POMO - $22Bn in 3 days and next week is light so you would think it's now or never if they intend to finish Q1 off with a bang.
Let's not be too greedy on the DIA puts (the quarterlies, not the $25KPs, which I will update later). We'll want to see what sticks this morning. Europe is flat and has been wild up and down and oil is $105 with a critical inventory at 10:30 which I will not be around for as it's Diversity Day at my daughter's school but I should be back by about 11.
Let's watch 12,000 on the Dow, of course, 8,200 on the NYSE and 800 on the RUT as critical breakdowns where we can get a bit more bearish but more likely they hold and we can find some upside plays a bit later.
There was a bus bomb in Israel and that's never good.
Wednesday's economic calendar:
7:00 MBA Mortgage Applications
7:00 Fed's Fisher: 'Economic Challenges and Opportunities'
10:00 New Home Sales
10:30 EIA Petroleum Inventories
12:00 Bernanke: 'Community Banking in a Period of Recovery and Change
At the open: Dow -0.13% to 12004. S&P -0.19% to 1291. Nasdaq -0.24% to 2677.
Treasurys: 30-year +0.54%. 10-yr +0.26%. 5-yr +0.15%.
Commodities: Crude +0.36% to $105.35. Gold +0.29% to $1431.70.
Currencies: Euro -0.59% vs. dollar. Yen -0.11%. Pound -0.84%.
Market Preview: Futures show some weakness ahead of housing data due out later this morning. Benchmark S&P -0.2%. Earlier: Colgate and Unilever are swapping some assets, BofA's dividend hike got rejectedby the Fed, and General Mills met earnings expectations. Oil +0.4% to $105.42.
MBA Mortgage Applications: +2.7% vs. -0.7% last week. Thirty-year fixed mortgage rate increased slightly to 4.80% from 4.79%.
PIMCO sees 3 key factors as adding to global inflationary risks: the degradation of sovereign balance sheets, emerging markets becoming exporters of inflation, and aging populations saving less and consuming more. With accommodative central banks, it's a recipe for a secular move higher in inflation.