Stock index futures are weak in early trade, with June S&P 500 futures last down 25 at 841.75. Lind Plus Senior Market Strategist Jeff Friedman said the market seems to be “running out of oomph” and momentum indicators, the Stochastics and Relative Strength Index (RSI), are warning the market is overbought and wanting to correct. Technically, he said it doesn’t appear the bulls have lost control on a longer-term basis, however. He said to watch the 20-day moving average at 824 in June S&P; a close underneath would indicate a short-term top has been posted. Near-term support is at 832.
This week, 130 S&P 500 companies are slated to report earnings. If one of the big names “beats the street” and the market goes down, that’s also meaningful and could indicate a larger correction is coming, said Friedman. You can now listen to Jeff’s daily market commentary via audio podcast.
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