Squawk Morning Briefing: Balanced Impact on OPEX

Traders seem disappointed with GOOG earnings after the bell yesterday and sent it down 30 points after hours.  Wild moves on earnings seem the norm for this name and 30 points feels tame compared to some other quarters in this heavily-watched name.

Meanwhile, Chinese economic data likely has to be seen as a positive with GDP coming in above expectations and, perhaps even more important, retail sales showing strong growth ahead of consensus.  However, PPI and CPI also advanced more than expected suggesting that inflation may be a concern.  Data out of India heightened .

The overall impact on prices heading into OPEX is likely to be balanced, leaving today’s moves moves to be anybody’s guess.  Our most likely interpretation of the wave structure would suggest an advance.  However, it is far from certain and even if it is in the cards we could see choppy action before a move up from Thursday’s low continues.  That means we need to allow for the possibility of either a decline or choppy action as major index components are pinned to expire strikes.  So with just about any possibility on the table we’ll want to watch the action carefully within the context of the scenarios laid out in today’s videos.

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