U.S. stock futures are lower a day after closing higher for the fourth straight day. The number of Americans filing for unemployment dropped below 2 million for the first time since mid-March. The report hints at a potential turn around in the U.S. economy ravaged by the coronavirus. On Friday, the critical employment report will be released, which could provide more data on the economy’s health.
The S&P 500 moved decisively past resistance at 3068.67 and closed at 3122.87. The volume was above average, and RSI is not at 68.95 just below the 70 overbought level. Potential resistance could now come in at 3130.97, and possible support will remain at the 200-day moving average of 299.36. As the index moves closer to overbought, a pullback is becoming more likely, but we feel any selling will be short-lived and a possible buying opportunity.
We are currently long-term bullish and short-term bullish.
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.