U.S. stock futures are set to open higher, with investors encouraged by the progress on a new stimulus package. White House Chief of staff Mark Meadows said negotiations, now totaling $1.9 trillion, have entered a new phase, and congressional chairs are now meeting. Also, 126 S&P 500 companies have reported Q3 earnings, 84% have beaten estimates. Gilead Sciences (GILD) was higher by 4% in pre-market trading after its remdesivier drug became the first drug approved for treating COVID-19 patients.
The S&P 500 traded below support at 3498.92 early but later in the rallied to close higher at 3453.49. The index had been trading higher and then selling off late in the day on below-average volume. However, Thursdays’ trading came with a late-day rally with above-average volume, with 2,400,401,664 shares traded. The RSI index also moved higher in support of the rally closing at 54.38. If there is a follow-through up day with higher volume, the recent selling could potentially be over, and a new base could form for an attempt to start a new 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.