U.S. stock futures are set for a higher open on continue reopening efforts in more states and another round of government stimulus. Lowe’s (LOW) and Target (TGT) both reported an earnings beat this morning, and investors appear to upbeat about the future of the U.S. economy. Today’s news has overshadowed doubts about the Moderna COVID- 19 vaccine trial news that hit the tape late Tuesday sending stocks lower into the close.
The S&P 500 traded above resistance at 2954.86 for the second day in a row, but it closed lower at 2922.94 as sellers took over to end the day. The selling came with lower volume, which is an encouraging sign along with a lower close in the RSI at 56.19. Every time the index tests the 2954.86 level, more and more sellers go away, and that could open the door for a potential breakout soon. The trading action is constructive, but we will wait for a rally with substantial volume before we return to a bullish short-term stance.
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.
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