March 11, 2013-Stocks Look to a Pause at Current Overbought Levels

Wall Street may be left pausing for a breather after its recent run up, which took the Dow Industrials to a record high and the other major averages to fresh multi-year highs. The index futures point to a lower opening on Monday. At the same time, the breezy domestic recovery that has been confirmed by recent data could help the markets avoid any potential correction. With the economic calendar fairly barren, the markets could see a consolidation move, although they could react to some lukewarm economic data released from Asia and Europe. The Dow futures are moving down 17 points, while the S&P 500 futures are slipping 2.40 points and the Nasdaq 100 futures are receding 5.25 points. U.S. stocks advanced strongly in the week ended March 8th, as positive labor market statistics released in the past week increased confidence in the economic recovery, increasing the appeal of risky bets. With job market turning in encouraging tidings, traders would now turn their attention to the unfolding week's economic data to see if the strength has pervaded into other sectors of the economy as well. The Commerce Department's retail sales report for February, the jobless claims report, the Federal Reserve's industrial production report for February, preliminary consumer sentiment reading based on a survey by Reuters and the University of Michigan for March and the results of the New York Federal Reserve's manufacturing survey are among the closely watched reports of the week.