U.S. stock futures are higher to start the day despite investor’s concerns about the prospect of a contested election. However, the Nasdaq futures were higher, suggesting a rally in big tech stocks is in the cards today. U.S. private payrolls increased less than expected in October, which shows a slowdown in economic activity. Private payrolls increased by 365,000 jobs last month, and the report for September was revised upward to show 753,000 jobs added.
The S&P 500 rallied early and almost touched potential resistance at 3399.54 but sold off to finish higher at 3369.16. The volume came in much lower with 2,319,137,280 shares traded, and the RSI index moved higher in support of the up move closing at 48.38. We are encouraged by the trading and feel that a potential short term bottom has been formed. If the index can move past possible resistance at 3399.54 and then the critical 50-day moving average at 3399.64, we feel a new uptrend will possibly be in place. We are also moving to a short term bullish stance.
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.
Private Nonfarm Payrolls measures the change in the number of total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals and farm employees.