9:00am (EST)

The bulls made a nice recovery off Thursday’s lows as they made a late charge in the final 30 minutes of trading to try to get back to even.

The Dow fell 25 points, or 0.2%, to close at 12,602.  The blue-chips traded in the red all session long and hit a low of 12,450 shortly after our midday update.  This represented a 177 point decline and moved the index within 1% of breaking crucial support at 12,350.  The bulls are still trying to clear 12,800 and held support so we can’t ignore the comeback.

The S&P 500 slipped 3 points, or 0.2%, to finish at 1,329.  We would have liked to have seen a close below 1,325 as the index traded down to 1,313 and a break below 1,310 would have negated yesterday’s buy programs into the close.  The bears are still pushing for a drop below 1,300 while the bulls eye 1,350. 

The Nasdaq dropped 26 points, or 0.9%, to settle at 2,849.  Once again, the 2,850 level was a battleground as Tech kissed a low of 2,818 before rebounding.  The bears are trying to push 2,800 while the bulls are still looking to clear and hold 2,900-2,950.

After the close last night, Nike (NKE, $96.89, down $1.22) announced earnings well below Wall Street’s estimates, missing by 20 cents.  Shares were taken to the woodshed in after-hours trading, dropping 13%, to finish south of $85.

Research In Motion (RIMM, $9.13, down $0.05) put another nail in its coffin after reporting an abysmal quarter and delaying the launch of their Playbook, yet again, to 2013.  The company lost nearly a buck a share and will lay-off 5,000 employees.        

There are two noteworthy economic reports shortly after the open this morning which could impact trading.  The Chicago ISM numbers are due out at 9:45am and the Michigan Sentiment figures will be released at 9:55am.

Futures are showing a huge pop for Wall Street this morning after the European Union came to some sort of debt agreement for the Spanish banks.  There is a lot to digest but it’s looking like a short-squeeze at the open.  Here is how we look:  Dow (+187), S&P 500 (+25), Nasdaq (+47).

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