U.S. stock futures are slightly higher after mixed earnings results from major banks and continued doubts of new fiscal stimulus being passed in Washington. Goldman Sachs (GS) was higher by 2.2% in pre-market trading after posting quarterly profits that were 94% higher. However, Bank of America (BAC) was done 2.3%, and Wells Fargo was done1.5% after a drop in Q3 profits. Earnings season is now underway, and investors will be watching closely to gauge S&P 500 companies’ strength.
The S&P 500 sold off after moving higher four days in a row to close at 3511.93. The index tested potential support at 3499.61 only to bounce off that level, so we now know buyers are active at that price level. The trading came with an uptick in volume, with 2,355,288,320 shares traded on the day. The RSI index turned lower in support of the selling closing at 62.12. We still want to see a base form between 3549.85-3499.61 to consolidate recent gains before the index attempts to continue the current uptrend.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.