Testing Prior Lows

Good morning. Premarket futures are positive as investors sort the latest earnings reports, more write-downs for Merrill Lynch, and falling oil prices as the dollar rallies against other major currencies.

As far as economic data, the S&P/Case-Shiller home-price index dropped to 168.54 which was slightly better than expected. At 10:AM we have the consumer confidence report with economists expecting a drop to 50.1 this month from 50.4 in June.

Premarket gainers: WBSN, CNQR, MBI, ABK, TFX, AG, UA, FDG, ANR, JRCC, JAH, MT, X, USS, TKC, SR, MTW, ELNK, UAUA, ALXN, BEAV, AMGN, ACGY, VLO, BP, CL, SAP, & ALU.

Premarket losers: CGNX, PLXT, ZRAN, CMP, CORS, KDN, LCAV, OVTI, JDAS, SEPR, TRID, HLIT, ATHR, SIRI, XL, MSO, TQNT, & LDSH.

The market seems focused on testing the prior lows we set just nine trading days ago:

It would be a positive to see the prior lows hold and without a complete retest of those same exact levels (i.e. higher lows), but we'll see if the market can find some support here to avoid that fate. Have a great day!