U.S. stock futures are lower a day after the Federal Reserve signaled a difficult recovery for the U.S. economy in the FOMC minutes for July. The initial claims for unemployment benefits rose unexpectedly back above 1 million for the week ended August 15, and investors appear to be in a risk-off mood to start the day. Also, reports suggest that a smaller coronavirus bill could be reached soon after the $600 a month benefit ended on July 31.
The S&P 500 traded up to 3399.54 on Wednesday only to selloff late and closed at 3374.85. There was an uptick in volume at 2,016,444,220, and the RSI index moved three points lower to close at 65.42. Potential resistance remains at 33921.52, and possible resistance could come in at 3355.46. The base the index has been building over the last six days is still in place, along with the potential for a new uptrend on a breakout of the current trading range. The long term chart is still a concern due to the downtrend in volume since the start of August.
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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