S&P futures vs fair value: -6.5. Nasdaq futures vs fair value: -9.8.

Still shaping up to be a weak start for stocks as futures indications continue to hold a negative bias. Merrill Lynch advising clients to sell shares of Countrywide Financial (CFC) on liquidity concerns, knocking CFC shares down 7% in pre-market action, and reports that an Australian company is saying subprime woes may have wiped out 80% of one of its hedge funds are acting as the latest overhang. Such news is likely to weigh heavily on an already beaten-down Financial sector and, without its leadership, the S&P 500 runs the risk of slipping into negative territory for the year. It is currently up only 0.6%, which can easily be erased by another sell-off in Financials since it accounts for about 21% of the total weighting on the broader market.