After falling $36.49 to $1,552.36 (-2.3%) yesterday, the S&P 500 ETF (NYSEARCA:SPY) and the bull market in US equities looks to regain footing today. Currently, the S&P futures are green, pointing to an open that might recoup some of the sell off yesterday. The green arrows this morning are due to great reports from Johnson and Johnson (NYSE:JNJ) and Goldman Sachs (NYSE:GS) and Coca-Cola (NYSE:KO). The SPY futures are up $11.60 or 0.75%, at the time of this publication.
Forecasts have generally pared for corporations following lower than expected results from new jobs' reports and manufacturing data, moreover slowing growth in China reported yesterday which sparked the sell off also plays into lowered expectations for US equities. The Q2 earnings might surprise to the upside for the S&P considering the low expectations.
There are many new data points to consider today, whether that be earnings or economic data, expect the market to take some time digesting but ultimately, the bull-market seems intact. The biggest risk to US markets is a sentiment reversal. Investors' resiliency has limits, if corporations cannot pull the earnings expected or cannot produce intriguing guidance, there will be selling.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am not a professional advisor; my interpretations of the market are independent and should not be construed as investment advice. I wrote this article myself, and it expresses my own opinions.