U.S. stock futures were higher as investors were bullish about more stimulus measures out of Washington, and Russain President Vladimir Putin claimed his country was the first to grant regulatory approval for a COVID-19 vaccine after less than two months of human testing. Domestically, the producer price index increased by 0.6% last month after falling 0.2% in June. However, the overall trend in producer inflation remained lower, helping the U.S. economy continue on a recovery path.
The S&P 500 closed at higher 3360.47, and there was a pick in the volume on Monday. The RSI index is now on the cusp of the overbought zone closing at 69.79, which shows the S&P 500 index is potentially extended after nine straight higher closing days. The next possible resistance level is at the high close of the year at 3393.52 on 2/19/2020. We feel the index will need to form a base over a few days before attempting to set a new all-time high. Potential support remains at 331.17 if any selling should come into the markets today.
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.