U.S. stock futures are set to open higher as an uptick in oil prices has energy stock moving higher. Exxon Mobil (XOM) and Chevron (CVX) are both higher by 1% in pre-market trading. Also, Moderna (MRNA) reached a $1.525 deal with the U.S. government to manufacture and deliver 100 million doses of its COVID-19 vaccine. However, investors appear to be concerned that a fifth coronavirus relief bill will not be passed due to both sides’ deadlock in Washington.
The S&P 500 opened higher to start the day on Tuesday but sold off later in the day to close at 3333.69. The volume was higher than average, and the RSI index moved lower away from the overbought zone to close at 64. Potential resistance could now come in at that 3381.01 level, and possibly support could come in at 3331.17. We still feel the index needs to form a base at these levels before attempting a move to new all-time highs. In our opinion, Tuesday trading action could be the beginning of the base building we are looking for over the next few days.
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.
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