MARKETS SPECTATOR: Opportunity knocks

The major US indices are all in the red in overnight trade, with the technology-laden NASDAQ under the most pressure following a very disappointing earnings result from search giant Google, who missed estimates by quite a margin.

Outside of that, economic data was mixed to stronger-than-expected, especially Philly Fed Manufacturing index and CB Leading index which both easily beat market expectations.

The NASDAQ is the worst performer, down 0.9 per cent while the broad-based S&P 500 and Dow Jones Industrial Average are only down 0.3 per cent and 0.1 per cent respectively.

As it looks like a weaker start to Friday's session, with the S&P/ASX 200 called to open around the 4550 level or around 10 points weaker than yesterday's close. With the index up 1.6 per cent for the week, it would appear to be vulnerable to some profit taking.

However, the last few times I have said that the market has been extremely well supported so it's much harder to call. There's just so much money looking to come into this market compared with the very little that wants to leave. Any sign of a pullback is bought and hence the very shallow dips.

With nothing due on the economic front and very little in the way of corporate news flow, it should be a much quieter session compared to yesterday's chaos, which resembled earnings season. It looks like sentiment will be driven by happenings in Asian markets and the improving outlook that China's numbers delivered yesterday.