S&P futures vs fair value: -6.0. Nasdaq futures vs fair value: -2.0.

Early sentiment continues to improve, so much so that the Nasdaq 100 futures recently inched above fair value. The pre-market bias now has a much more neutral disposition as the GDP report showed faster than expected acceleration in economic growth with a downtick in inflation. Additional analysis of the report also shows, however, that the data are not an indication of a strong trend going forward since the overall pickup in GDP growth was due to a swing in a number of categories outside of consumer spending, which did not pick up. So far, investors are looking for more than backward-looking data to counter growing concerns that tightening credit market conditions might also curtail economic growth.