Stock index futures surged on news the Federal Reserve will commit as much as $800 billion to revive lending, with the December S&P 500 futures last trading up 21 at 869. The S&P 500 has rallied 13 percent from an 11-year low on Nov. 20, and posted its best two-day gain since 1987, according to Bloomberg. Lind Plus Senior Market Strategist Jeff Friedman said technical indicators, the Stochastics and Relative Strength Index (RSI), are turning neutral and hinting at some relief. However, he’d like to see closes in the December S&P futures above the 20-day moving average at 896 to increase confidence a near-term low has been posted. If the market turns lower, he said the 75 retracement of the 2002-2008 rally marks the next downside target, at 717.

