It is another morning where the trading in the equity futures market is tentative. Currently, the S&P 500 futures are up three points and are trading 0.1% above fair value, the Nasdaq 100 futures are up four points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up three points and are trading in-line with fair value.<\/p>\n\n\n\n
Some of the market’s restraint is predicated on a belief that the mega-cap stocks are due for a pullback and will exert some overriding pressure on the major indices just as they have exerted overriding aid to this point.<\/p>\n\n\n\n
The latter point notwithstanding, the mega-cap stocks showed some resolve to selling interest in yesterday’s trade, which lent a small measure of support to a market that was favoring cyclical\/value plays. The strength seen in the broader market enabled the S&P 500 to log its highest closing level (4,283.85) since last August, although it continues to hold below 4,300.<\/p>\n\n\n\n
It will take a close above 4,305.20 to take out the highest closing level since last August, so market participants’ eyes are trained on levels just as much as they are trained on the price action of individual stocks.<\/p>\n\n\n\n
There is a good bit of price action this morning in smaller stocks like Dave & Buster’s Entertainment (PLAY), Couchbase (BASE), United Natural Foods (UNFI), Casey’s General Stores (CASY)<\/strong>, and Yext (YEXT)<\/strong> following their earnings reports, but big moves in a handful of small stocks don’t move the market like big moves (or even small moves) in a handful of mega-cap stocks do.<\/p>\n\n\n\n