U.S. stock futures are higher after the FDA granted Emergency Use Authorisation for the use of blood plasma recovered from COVID-19 patients as a treatment for coronavirus. The move has provided encouragement that the U.S. economy can continue to reopen and has airline, cruise line, and casino stocks higher in the pre-market. President Trump is also considering fast-tracking an experimental COVID-19 vaccine being developed by AstraZeneca Plc (AZN) and Oxford University. The S&P 500 and the Nasdaq indexes are both set to open at new all-time highs.
The S&P 500 broke out of the 3355.46-3387.89 trading range and closed at 3397.16. The close was also above the 2/15/2020 high of 3393.52. There was a pick up in volume at 1,986,860,800 shares and RSI moved higher in support of the breakout to close at 68.30. We believe there is a potential new uptrend starting after the index formed a seven-day base. Possible support could now come in at 3387.89. A follow-through day with above-average volume is needed soon to confirm the new breakout.
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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