Wall Street is set for a higher open as the rapid roll-out of vaccines and new stimulus brought in hopes of an economic rebound. The U.S. Senate is expected to take up President Biden’s relief package today, and they aim to sign it into law by March 14. However, the ADP National Employment Report came in lower than expected for February, suggesting a struggling labor market. Private payrolls only increased by 117,000 jobs, and January’s report was revised up to 195,000.
The S&P 500 closed lower at 3870.29, which was below a support level at 3870.29. The selloff was about half the previous days’ range and is very typical after a wide-ranging day. The volume came in much lower with 2,281,166,080 shares traded and RSI remained above the 50 level, closing at 51.31. If support at 3870.29 is broken again at the open, the index could possibly test 3830.41 quickly, so an up day with high volume is critical today.
We are currently long-term bullish and short-term cautious.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions, or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk, and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.