DJIA    up 5    at 12,740

S&P    up 1    at  1,319

US stock index futures are barely changed this morning, although they have recovered from early weakness. Yesterday, the major indices pulled back sharply after a strong start following Wednesday's doveish FOMC statement. The Dow tested resistance around the 12,850 area while the S&P failed to hold above 1,325 - previously resistance in April last year. Investors are asking themselves if stocks are due a correction now given their relentless rally since mid-December. Certainly, some consolidation would be welcomed now, even by bulls, as it will provide a breathing space and a platform from which to launch a further assault on last year's highs.

But there are reasons to fear a deeper correction. Investors have digested the US Fed's commitment to low base rates and the hint of further stimulus. Now they are wondering if expectations of stronger US growth and decoupling have been overdone. On top of that, many worry that there is too much complacency surrounding Europe's ability to deal effectively with its debt crisis. And any agreement between private Greek bondholders and finance ministers (assuming it happens) does nothing to solve the country's long-term solvency issues. In addition, it could open the door to calls from Portugal and Ireland for similar treatment.

Today we will have the first look at fourth quarter GDP, plus the revised University of Michigan Consumer Sentiment and Inflation Expectations. Also there are earnings reports from Chevron, Ford, Honeywell and Procter & Gamble.

Have a good weekend.