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By Ellie Ismailidou and Sara Sjolin, MarketWatch

Stock market tests resistance after a 'powerful run,' strategists say

Wall Street was poised for losses on Tuesday, but stock futures were off early lows as oil prices turned positive.

Dow Jones Industrial Average futures fell 72 points, or 0.4%, to 16,976, while those for the S&P 500 index lost 10 points, or 0.5%, to 1,989. Futures for the Nasdaq 100 index gave up 25 points, or 0.6%, to 4,275.

Crude-oil prices turned positive as the U.S. market neared, reversing a 0.5% drop. The commodity closed at the highest level of the year on Monday (http://www.marketwatch.com/story/crude-prices-add-to-gains-in-an-increasingly-bullish-market-2016-03-07) on hopes that major producers will curtail supply and as stronger economic data boosted expectations of improving demand.

The early move seemed to be a break with the stock market's recent strong correlation with oil prices.

That could be an indication of technical resistance after a recent "very powerful run" over the past couple of weeks that has sent stocks up 10% since mid-February, said Phil Orlando, equity market strategist at Federated investors.

"Some consolidation is warranted," Orlando added.

U.S. stocks closed higher on Monday, in part thanks to the jump in oil prices. The S&P 500 index and Dow average extended their winning streak to five straight sessions (http://www.marketwatch.com/story/us-stocks-set-to-take-a-breather-after-three-week-rally-2016-03-07).

China blues: Early pressure on U.S. stock futures came after Chinese trade data showed exports tumbled for an eighth straight month (http://www.marketwatch.com/story/chinas-exports-tumble-for-8th-month-in-a-row-2016-03-07), in another sign a slowing global economy is undercutting growth in the world's second largest economy.

"Will China again be the factor that breaks the bulls? Overnight the trade data from the world's second-largest economy was truly awful," said Richard Perry, analyst at Hantec Markets, in a note.

Data showed exports fell 25.4% in February, compared with the 15% expected, while imports were down 13.8%. Perry noted that though double-digit declines were expected for both imports and exports, those drops drive real concerns about the pace of China's economic slowdown.

"Not only does this reflect badly on the emerging markets that supply China, but also the state of global demand," he said.

Read: Why 2016's gold rush is already running out of steam (http://www.marketwatch.com/story/why-2016s-gold-rush-is-already-running-out-of-steam-2016-03-07)

Movers and shakers: Shares of SunEdison Inc. (SUNE) jumped 25% after Vivint Solar (VSLR) said it has terminated its merger agreement with SunEdison (http://www.marketwatch.com/story/vivint-terminates-sunedison-takeover-deal-2016-03-08-7103646)after mounting financial woes kept the solar-energy company from meeting obligations of the deal.

JetBlue Airways Corporation (JBLU) lost 5.4% after the airliner projected a first-quarter unit revenue decline (http://www.marketwatch.com/story/jetblue-gives-downbeat-outlook-as-february-unit-revenue-falls-2016-03-08).

(http://www.marketwatch.com/story/jetblue-gives-downbeat-outlook-as-february-unit-revenue-falls-2016-03-08)Dicks Sporting Goods Inc. (DKS) were down 3.6% after the retailer missed profit expectations for the fourth quarter (http://www.marketwatch.com/story/dicks-sporting-goods-shares-take-a-hit-after-missing-profit-expectations-2016-03-08).

Shares of Seadrill Ltd. (SDRL.OS) skidded 6% premarket, falling after a recent rally. The offshore driller surged 121% in U.S. trade on Friday after what analysts called a major short squeeze (http://www.investopedia.com/terms/s/shortsqueeze.asp).

The Norwegian company's chief executive told Reuters (http://uk.reuters.com/article/seadrill-refinancing-idUKL5N16F1EQ) he expects refinancing from banks to come through during the second quarter, and said that short sellers are "beginning to panic" at the prospect.

Shares of Apple Inc. (AAPL) down 0.9% premarket, after the Supreme Court declined Apple's request for a review of an e-books (http://www.marketwatch.com/story/supreme-court-turns-away-apple-appeal-in-e-books-antitrust-case-2016-03-07) antitrust case, leaving the iPad maker facing a payment of $400 million to e-book consumers.

Shares of Shake Shack Inc. (SHAK) dived 9.3% ahead of the bell after the burger chain late Monday posted a lackluster sales forecast (http://www.marketwatch.com/story/shake-shack-posts-lackluster-sales-forecast-2016-03-07).

Urban Outfitters Inc. (URBN) soared 9% in premarket after posting a profit fall that beat forecasts late Monday. Dick's Sporting Goods Inc. (DKS) fell over 6% in premarket after earnings and sales disappointed Wall Street expectations. .

Data: The day's only major economic release is already out. The NFIB small business index for February fell 1 point (http://www.nfib.com/surveys/small-business-economic-trends/) to 92.9, with none of the 10 components posting a gain.

"Overall, a 'ho hum' outcome, confirming that the small business sector is not headed up with any strength, just treading water waiting for a good reason to invest in the future," the NFIB said in the release.

There are no Federal Reserve speakers on tap, as the central bank is in its so-called blackout period ahead of next week's policy-setting meeting.

Other markets: Asian markets ended mixed after the lackluster Chinese trade data, although the Shanghai Composite Index eked out a gain to close higher for a sixth straight session (http://www.marketwatch.com/story/china-stocks-plunge-dragging-down-asian-markets-2016-03-07).

European stock markets were lower (http://www.marketwatch.com/story/european-stocks-fall-after-surprise-plunge-in-chinese-exports-2016-03-08) almost across the board, with commodity firms bearing the brunt of the selloff.

Metals traded mixed, while the dollar was slightly higher against most other major currencies.

(END) Dow Jones Newswires

March 08, 2016 09:25 ET (14:25 GMT)

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