U.S. stock futures are higher on news of progress on a possible COVID-19 vaccine after the S&P 500 was lower for two straight weeks. AstraZeneca (AZN) reported they resumed its vaccine trials in the United Kingdom, and Pfizer (PFE) proposed expanding its Phase 3 pivotal COVID-19 trial to about 44,000 participants. Also, this week the Federal Reserve meeting should provide more clues on the health of the U.S. economy.
The S&P 500 undercut the 50-day moving average at 3321.56, traded down to 3310.47, and rallied to closer at 3340.56 on Friday. Volume was again below average with 2,337,440,256 shares traded, and the RSI index closed little changed at 44.78. Potential resistance could come in at 3349.63, and possible support will remain at the 50-day moving average at 3321.56. We will remain short term bearish until a close above 3399.54 on better than average volume.
We are currently long-term bullish and short-term bearish.
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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