Wednesday, February 6, 2013

Traders Search for Pullback Trigger as Fears Rise




CNBC reports: With volatility low and complacency high, traders are searching for the spark that could trigger a market pullback.

Stocks Tuesday finished sharply higher with the Dow up 99 at 13,979, its third big move in a row. The S&P 500 was up 1 percent at 1511, and the Nasdaq was up 1.3 percent at 3171.

There are some major earnings Wednesday, including Time Warner, Glaxo Smithkline and Marathon Oil, but no economic reports for the markets to focus on, except for mortgage application data at 7:00 a.m. ET. Oil and gasoline prices could also get attention, when government inventory data is released at 10:30 a.m.

While traders have been chatting about the potential for a pullback from near record highs, the VIX, a measure of market fear, fell 6.5 percent, to 13.72 Tuesday. The VIX reflects market expectations of near-term volatility and is a metric of the out-of-the-money puts and calls on the CBOE.

Read all about it at http://www.cnbc.com/id/100436512

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