U.S. stock futures are sharply lower to start the week due to surging coronavirus cases and no progress on a new financial aid deal out of Washington. The U.S. had more than 83,000 new infections on Friday and Saturday, surpassing the previous record of 77,300 new cases. Also weighing on markets is weak economic reports out last week that shows a stalling U.S. economy.
The S&P 500 traded in a wide range but still closed at 3465.396 in the middle of the current trading range of 3498.92-3499.61. The volume was lower, with 2,153,796,096 shares traded, and the RSI index closed higher at 55.75. Potential support will remain at 3498.92 and then at the 50-day moving average, currently at 3407.86. The index has been trading in wide ranges the last four days, and as we get closer to the election, we feel there will potentially be more of the same as we advance.
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.