S&P futures vs fair value: +18.7. Nasdaq futures vs fair value: +25.5

A bullish bias persists in pre-market action as both S&P 500 and Nasdaq 100 futures hold their own well above fair value. Investors are embracing everything from Bush’s subprime mortgage proposal, which is restoring confidence throughout the beaten-down Financial sector, to tame inflation data, which boosts rate cut expectations.

With regard to Financials, the return of its leadership will be a crucial leg of support for a market that struggled to find direction yesterday as the absence of its upside influence acted as an overhang.