DJIA    down 65    at 12,825

S&P    down  6     at  1,345

US stock index futures are weaker this morning and point to a lower open later today. Investors have been net sellers of European equities this morning despite yesterday's late news that Greek policymakers have agreed to a package of additional austerity measures. There are concerns that the Greek deal falls short of EU/IMF/ECB requirements, and this puts a question mark over the release of the second bailout tranche, and the private sector bond swap.

As far as the US markets are concerned, all the major indices look overstretched to the upside currently. Would-be buyers are desperate for a pull-back as no one wants to risk going long at a potential market top. Yet with the Fed pledging to keep rates low for the forseeable future, plus holding the door open to further stimulus (despite improving economic data), equities remain an attractive prospect for investors. But it is worth remembering that the earnings season has been mixed so far and analysts are anticipating slower earnings growth next quarter. While bullish investors argue that P/E multiples are relatively low, it is worth remembering that the developed world is now firmly stuck with a zero rate interest policy, and still relies on central bank intervention to backstop a crippled financial system.

Today we'll see the US Trade Balance, Consumer Sentiment and Inflation Expectations, and Fed Chairman Ben Bernanke speaks about the housing market.

Have a good weekend.