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Stock futures edge lower

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Stock futures are edging lower this morning after last night's earnings warning from storage networker McData (NASDAQ:MCDT) $15.93, which is trade down 24.9% at $11.95 in pre-market action.

S&P futures are edging down 2.6 points at 1,146, the more tech- heavy NASDAQ futures are down 14 points at 1,491, and Dow futures are lower by 19 points at 10,441.

Fair value for the S&P 500 today is $0.04. HL Camp & Company has their computers set for program buying at $1.38 and set for program selling at $-0.88. Fair value for the NASDAQ-100 today is $1.31.

Merrill says sell U.S and U.K and buy Japan

Adding to some of the negativity in the futures market is a Merrill Lynch call this morning telling investors to lighten up on U.S. and U.K stocks and overweight positions in Japanese investments.

The upgrade on Japan marked the first time Merrill has made changes to the country allocations since April of last year.

Earlier this week, Credit Suisse First Boston raised its outlook on Japan's equities, but made clear that its buy signal was for two months only because shifts in fundamentals and corporate restructuring required much longer time to bear fruit.

Sony Corp. Chart - $1 box

This morning's call from Merrill Lynch to "overweight Japan" on the thoughts of a global economic recovery are interesting to say the least. One stock that I consider a Japanese "bellwether" are shares of Sony Corporation (NYSE:SNE) $50.30. Last night, the stock close just below a still downward trending 200-day moving average, but its a stock I'd keep an eye on for a bullish trade on a move above the $51 level, or on a pullback near the $45 level.

Jeff Bailey
Senior Market Technician
Option Investor

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