February 8, 2010, 7:00 am EST 
—The Standard & Poor’s 500 index futures down 1.40 to 1058.40, as traders remain concerned that some European countries might not be able to rein in mounting debt. Stocks have also been hurt in recent weeks by China’s plans to limit economic growth and the U.S. government’s proposed rules to restrict trading by large financial institutions. All of those concerns have investors on edge about whether the global economy can recover strongly in the coming months. Overseas, Japan’s Nikkei stock average fell 1.1 percent. Britain’s FTSE 100 rose 0.2 percent, Germany’s DAX index gained 0.4 percent, and France’s CAC-40 rose 0.2 percent. The S&P 500 ended the week down 0.7 percent. It was the first time since March that the index has fallen four straight weeks. Stocks had rallied for 10 months after hitting 12-year lows last March on hopes of a robust rebound. Indeed, the recent troubles demonstrate a recovery might not be happening as fast as investors had hoped. … Quiet week in terms of economic reports that could lend further support to the strength or weakness of the economic recovery. The weekly unemployment report, due out Thursday, will be among the most closely watched reports. Economists predict the number of workers filing for unemployment benefits for the first time fell last week to 465,000 from 480,000.High unemployment remains one of the biggest obstacles to an economic recovery. However, on Friday, the Labor Department said the unemployment rate fell to 9.7 percent in January from 10 percent a month earlier. Consumer spending also remains a problem as it accounts for more than two-thirds of all economic activity. The Commerce Department is expected to say retail sales rose 0.3 percent last month after falling 0.3 percent a month earlier. … Meanwhile, bond prices fell Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.59 percent from 3.57 percent late Friday. The dollar mostly fell against other major currencies, while gold prices rose. …
… Change near term resistance to 1095.40, while near term S&P 500 tests of 200 ema at 1046.20 will determine direction. A close above 1046.20 is critical to insure upside bias. However, a breakdown would indicate downward move to 991.50. The stock market lost 0.7% last week in volatile trade with selling driven by fears regarding the fiscal situation of several European countries, China tightening its monetary policy and the U.S. employment situation. A large number of companies reported mostly better-than-expected earnings, though their results had a relatively muted impact on trade as investors focused on macro issues. In the end, eight of the 10 sectors fell, though overall losses were contained thanks to some solid gains early in the week and a rebound in late trade on Friday.