Stock index futures are lower in early trade as swine flu has grabbed headlines. Lind Plus Senior Market Strategist Jeff Friedman notes June S&P futures remain above the 20-day moving average at 834, which is positive, but technical momentum indicators, the Stochastics and Relative Strength Index (RSI), are bearish and suggest a short-term top may be in place. He said a close under 834 is needed to confirm the bearish trend. “Because of this swine flu epidemic, markets are negative and panicky,” he said.
He put support at 834 and then 803, with resistance at 873. On a rebound, longer-term resistance is at the January high 937,he said.
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