U.S. stock futures are set for a big gain to start the week on encouraging data on a potential COVID-19 vaccine. Also, investors are pricing in more stimulus to help the U.S. economy out of the current slump. HHS Secretary Azar aid the U.S. is not seeing a rise in cases in most states that are opening up, and that has investors encouraged and in a bullish mood.
The S&P 500 closed the week strong closing at 2863.70 just under potential resistance at 2879.22. Volume was above average for the third day in a row, and RSI moved higher to support the up move. So, a close above potential resistance at 2879.22 would be a bullish sign and could potentially attract new buyers. Potential support will remain at 2825.60 and then potentially the 50-day moving average at 2712.89.
We are currently long-term bullish and short-term bearish.
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.