U.S. stock futures are set to open higher after Johnson & Johnson (JNJ) initiated a Phase 3 clinical trial of its single shot COVID-19 vaccine candidate. Also, Nike (NKE) beat quarterly expectations and raised full-year revenue guidance. Later today, the Purchasing Managers Index (PMI) will be released, and investors will be looking to gauge the health of U.S. business activity.
The S&P 500 moved above resistance at 3279.32 and closed at 3315.57 on average volume of 2,361,134,336. The RSI index also moved higher in support of the up move closing at 43.70. The next level of potential resistance could come in at the critical 50-day moving average at 3348.08 and then possibly at 3349.63. Possible support should now come in at 3279.32 and then 3229.10. If the S&P 500 can hold current levels without making a new low, we feel the recent correction could be over.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
The flash Composite Purchasing Managers’ Index (PMI) provides an early estimate of current private-sector output by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around 10 days ahead of the final report and are typically based upon around 85 percent of the full survey sample. The report tracks changes in variables such as new orders, stock levels, employment, and prices across both manufacturing and services. Production is also tracked, defined as “production” for manufacturing and “output” for services. Results are synthesized into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster output is growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by IHS Markit.