U.S. stock futures are higher on hopes of smaller and targeted stimulus packaged being passed in Washington soon. This, despite the number of Americans filing new claims for jobless benefits, came in lower last week. Initial claims came in at a seasonally adjusted 840,000 for the week ended October 3rd compared with an upwardly revised 849,000 in the prior week. The data continues to show a U.S. labor market that is still struggling to recover.
Again, the S&P 500 tested resistance at 3428.92, and sellers came in to move the index down to close at 3419.44. The RSI index moved higher in support of the move, but volume was only average at 2,077,558,016. However, the up volume was 80% of the shares traded, a potentially bullish sign for the current uptrend to continue this week. Possible support will remain at 3399.54, while potential resistance will remain at 3428.92 and then 3479.15 should the current resistance be taken out.
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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