Stocks Set for Profit-Taking at the Open

Stocks were setting up for a weaker opening this morning as futures shuffled down in the red.

At 9:09 a.m. EDT, the S&P 500 futures were at a negative 6.1 points, just under 5 points below fair value and an indication of some negative sentiment for the early going. The Nasdaq 100 futures had tumbled back towards initial weakness after inching up an hour ago, and were down 43 points, indicating some strong selling pressure on large-cap tech stocks at the open.

Despite the surging optimism of a few on Tuesday, the Fed hasn't disappeared, and investors may want to cash in on yesterday's stellar post-holiday rally this morning. On a percentage basis, yesterday marked the biggest one-day run-up in the Nasdaq Composite Index's history, while the Dow Jones Industrial Average rose about 2.2% and the S&P 500 grew 3.2%.

"After you rally more than 10% on the Nasdaq 100 in one day, you're likely to see a little bit of profit-taking," said Bill Meehan, chief market analyst at Cantor Fitzgerald. ...