Russell 2000 futures slightly higher

The Russell 2000 (NYSE:IWM) futures have moved up and the small-cap index will probably open higher.

Stocks are poised for a bullish opening following news that investment bank JPMorgan Chase & Co. (NYSE:JPM) may improve its offer for Bear Stearns (NYSE:BSC) to $10 a share from $2 a share. The move is an attempt to appease Bear Stearns’ shareholders, many of whom are angry at the low price.

The Russell 2000 had an "inside session" recovery Thursday, rising 17.29, or 2.60%, to 681.42. The market was able to post a solid advance for the holiday-shortened week despite a sloppy start on Monday, and now needs to hold above 650 this week to help validate any bottoming theories in play.

There is very little solid chart support until we get back down to 667 and 660, but there might be some buying interest on a dip toward 674 if the market starts out soft. On the upside, resistance is at 686, then just below 700. Existing home sales data comes out this  morning at 10:00 a.m. ET and could spark a little volatility.

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