U.S. stock futures are set for a lower open as worries about a stall in negotiations over a new coronavirus aid bill. There are 28 million Americans who continue to collect unemployment checks, which hurts the potential of an economic recovery. A Reuters poll of over 110 economists showed a new round of stimulus would be needed to keep the economy growing. The poll also suggested the U.S. growth could be 18.8% in the current quarter on an annualized basis after shrinking a record 32.9% last quarter
The S&P 500 sold off down to 3354.69, below support at 3355.46, and rallied to close higher at 3385.51. Volume was lower at 1,814,700.28, and the RSI index did not move lower with a close at 66.91. So, we now know the support at the 3355.46 is valid, and a break below that level could potentially bring in more selling. However, the index remains in a seven-day base that could still lead to a potential new uptrend. The test and hold of support are also good indicators that traders, possibly, want to move the index higher.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.