9:00am (EST)

The bears weren’t too rough on the Dow yesterday but the S&P 500 and Nasdaq suffered 1% drops following weak Financial earnings and some terrible Tech numbers.  Economic news didn’t help matters but the good news is that we have planned for a pullback.

The Dow fell 12 points to close at 11,825 but managed to trade to a two-year high of 11,861, thanks in part to IBM (IBM, $155.69, up $5.04) which got rewarded for its earnings report.  

The S&P 500 dropped 13 unlucky points and finished at 1,281.  The index traded to a low of 1,278 and we are watching for a possible break below 1,275 which could lead to 1,250 which is where we are looking to get back into some Tech plays, possibly.

The Nasdaq got punished for a 40 point loss and settled at 2,725.

Shares of F5 Networks (FFIV, $138.78, down $3.00) are doing their best Tom Petty this morning after the company came up a little short on its quarterly earnings.  The stock is down another $29, to $110 in pre-market action.  The company beat their earnings per share number but missed on revenue and offered a lower forecast for 2Q.

There could be an opportunity here…

As far as futures, they are pointing towards a slightly lower start:  Dow (-11); S&P 500 (-1); Nasdaq 100 (flat).  We will be back in the afternoon but stay close to your computer.  We may send out a new trade this morning.