US stock futures are slightly higher this morning, recovering from overnight losses. The market held in a pretty tight range yesterday as it digested the previous four days of gains. Last night, China PMI was basically in line. It will be interesting to see the way the next few sessions pan out.
SPY is doing work above $139.30-139.40 and should keep some shorts trapped and keep bullish momentum intact. The $138.50-138.70 level is bigger support to watch if we get there. SPY resistance to the upside is $140.20 and then $140.81.
With a new month comes a raft of new economic numbers, always starting with the ISM manufacturing survey at 10am on the first day of the month. We have seen US economic data start to weaken a bit after seeming to gain momentum, and today’s report, along with Friday’s jobs report, will play a big role in determining the short-term fate of this market. Yesterday the Chicago PMI fell to its lowest levels since November 2009, while the GDP reading disappointed last week.
While the meat of earnings season has passed, there are still big names reporting. Pfizer (PFE) is trading slightly lower this morning after narrowly beating expectations, but also lowering its 2012 outlook. Traders will also be watching data from the automotive industry later today and how they affect stocks like General Motors (GM) and Ford (F).
Apple (AAPL) will also likely be a focus on the Virtual Trading Floor(R) today, with traders looking to potentially buy it off the 50-day moving average after yesterday’s big drop.
Disclosure: Scott Redler is long AAPL, MSFT, GLD, SLB. Short SPY.
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