This morning, the S&P 500 Index e-mini futures (ES-H3) are trading higher by 3.00 points to $1490.75 per contract. Yesterday, the major stock indexes staged their largest decline of 2013. The sell off also occurred on the heaviest volume of the year telling us that institutional money wanted to get out quickly. Often, after a large point decline the following trading session will be more subdued or quiet. Either way, traders will certainly have to be more selective in this type of market.
Later today, Federal Reserve Chairman Ben Bernanke will testify before the Senate Banking Committee. He will also testify tomorrow in front of the U.S. Congress. So we shall see if the words from Chairman Bernanke are enough to lift these stock markets. After all, the guy is printing more money than ever at this time. He is currently buying $85 billion worth of U.S. Treasuries and mortgage backed securities every month.
Last night, all of the leading Asian stock indexes sold off sharply. The Nikkei 225 Index (Japan) was the biggest loser in Asia falling by 2.26%. Traders should watch for weakness in all of the Asian ADR’s today. Leading stocks such as Toyota Motor Corporation (ADR) (NYSE:TM), Honda Motor Co Ltd (ADR) (NYSE:HMC), Canon Inc. (ADR) (NYSE:CAJ), and Panasonic Corporation (ADR) (NYSE:PC) are just a few Japanese ADR’s that could be volatile today.