On the data front, the first half of the week will be focused on real estate. On Monday the National Association of Realtors reported that February existing home sales fell 9.6% to a seasonally adjusted annual rate of 4.88 million from an upwardly revised 5.4 million in January. This was more than expected. Many economists are expecting the housing market to stabilize this year, but a number still predict prices to slip further before 2014. On Tuesday at 10:00 a.m. ET is the FHFA Housing Price Index. This is followed on Wednesday at 7:00 a.m. ET by the MBA Mortgage Index and the 10:00 a.m. ET new home sales data.
The earnings docket is light this week, but some names to keep an eye on are Carnival (CCL), Dollar General (DG), Walgreens (WAG), Adobe Systems (ADBE), and Discover (DIS) on Tuesday; General Mills (GIS) on Wednesday; Best Buy (BBY), GameStop (GME), Lennar (LEN), Oracle (ORCL), and Research In Motion (RIMM) on Thursday; and KBHome (KBH) on Friday. Both Tiffany & Co. (TIF) and Oracle (ORCL) have high levels of exposure in Japan and investors will be watching for affects upon the companies resulting from Japan's economic distress.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.