U.S. stock futures are higher to start the week on hopes of a new fiscal stimulus bill being passed in Washington. The Trump administration called on Congress to pass a stripped-down coronavirus bill after talks on a broader package broke down. Also, this week is the start of the third-quarter earnings season, and investors will be watching to see how companies have held up during the COVID-19 pandemic.
The S&P 500 moved up to potential resistance at 3479.15 but did not get through closing at 3477.14. The RSI index also moved higher in support of the move closing higher at 60.72, and volume was again only average, with 2,223,308,544 shares traded. The last three trading days have the index in a potentially extended position, and we feel a close above potential resistance could prove difficult. A basing formation for the next few trading days wold be constructive to help continue the current uptrend. Potential resistance will remain at 3479.15, and possible support could now come at the 3458.07 level.
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.