U.S. stock futures are lower after an unexpected rise in the number of Americans filing new claims for unemployment benefits. Initial claims totaled an adjusted 870,000 for the week ended September 9th compared to 866,000 the prior week. Jobs cuts have now spread to the financial and technology industries that were not initially impacted by the coronavirus pandemic. The report supports views that the U.S. economic recovery was slowing amid decreasing government support.
The S&P 500 moved below support at 3279.32 and closed lower on the day at 3236.92. However, volume was lower, with 2,455,482,624 shares traded, and the RSI index moved to a new short-term low at 37.04. There should be critical potential support at the low set on 9/21 at 3229.10, and if that does not hold, 3200.05 would be the next possible support level.
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.