S&P 500 futures are lower this morning after another dramatic jobless claims report showed 3.839 claims for unemployment benefits. The report was stunning but lower than last week’s report of over 4 million applications. Also, the Federal Reserve pledged to expand emergency programs to boost economic growth, but they lower expectations for a fast rebound in the U.S. economy. Good earnings from Tesla (TSLA), Twitter (TWTR), and Facebook (FB) have shown the technology sector has not suffered during the pandemic.
The S&P 500 traded as high at 2954 near potential resistance at 2985.93 and closed at 2393.51 on Wednesday. The impressive rally did come with better than average volume and a good uptick in the RSI index. The substantial increase in volume leads us to believe a potential new uptrend is in place, and we feel any pullbacks will be short-lived and a possible buying opportunity. Potential resistance will remain at 2895.93 and the then the critical 200-day moving average at 3006.25.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
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.
This is not a recommendation to purchase or sell the stocks of the companies mentioned.