Hurricane Gustov did less damage than feared to the U.S. Gulf Coast and oil refining areas, sending crude oil down below $109 a barrel. The stock market liked the news, with major market averages up in early trading. September S&P futures were last up 11.50 at 1294.50.

“It looks like a bullish day,” said Jeff Friedman, Senior Market Strategist at Lind Plus. He noted technical momentum indicators, Stochastics and the Relative Strength Index (RSI), have turned bullish for the S&P futures, signaling higher prices. However, he warns the economy is still shaky, and gains may not be sustained. He put resistance at 1306, where day-traders might consider selling. The market is above the 20-day moving average at 1282 after a sleepy inside session Friday, but Friedman said he’d like to see a close above 1314 to get him on board the bull train with more conviction.

For more long-term market insights and trading strategies, join Jeff for his monthly “Friedman’s Futures Forecast” webinar live on Wednesday, September 3 at 3:30 p.m. CT. It’s free to attend, and you can ask Jeff any questions you have in a live interactive chat. Sign up.