NEW YORK ( TheStreet) -- U.S. stock futures point to a lower open on Wall Street Thursday following Wednesday's final hour reversal. The market is tracking declines in European markets, with the Stoxx Europe 600 Index dropping 1%. Bulls will look to protect key retracement levels and hold onto gains from the steep rally over the last two weeks.

Earnings season is starting to ramp up Thursday with the release of JPMorgan Chase ( JPM) numbers. The bank reported a 4% drop in third-quarter earnings, which wasn't a surprise. The EPS number was $1.01, compared to analyst estimates of 91 cents, on revenue of $23.8 billion vs. $23.3 billion expected. But apparently the report wasn't strong enough to push a weakened JPM stock higher. The stock is currently about 2% lower following the report.

The pressure is building on Research In Motion , which is still working to restore full service to its customers' phones. Outages have spread to most of North America, where users are having issues accessing email, using Internet browsers and using BBM. The company has blamed the issue on a system switchover that triggered a data back log, but customers don't want to hear excuses. The problems come at an inopportune time, as the iPhone 4S is set to launch this Friday. The stock is off 3.5% this morning.

The market has been extremely impressive over the last seven to eight days, but volume has been light. However, traders don't profit based on volume, they profit based on price action, and for now it seems composure has changed in the bulls' favor. On Wednesday, the S&P knocked on the door of heavy resistance at 1220 and it was a good spot to take some profits on swing long positions, and test some cash flow shorts. So far there has been no significant retracements, only rest, so it will be important to see what levels hold. Shallow support stand at 1187-1195, while the 50-day moving average should hold at 1173-1177.

Scott Redler is short SPY, MOO, OIH, LVS.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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