Russell 2000 futures rising

Small-cap stocks are set for a bullish opening following news that retail sales unexpectedly rose 0.3% in January. That beats economists’ forecast of a decline of 0.2% and is an improvement over December’s 0.4% drop.

Sales excluding autos also increased 0.3%, more than the projected 0.2%.

The numbers are good news for those worried that there is a pullback in consumption that will send the economy into recession.

Although the retail sales report represents the biggest calendar event risk of the week, the 10:00 a.m. ET business inventory data might generate a minor ripple in trading later in the morning.

Daily support and resistance levels remain static after Tuesday’s range-bound action: look for support today at 688, 680 and 674, with resistance at 710 and 721.

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