U.S. futures are higher again this morning on hopes the Republicans will retain the Senate and create a divided government. While Joe Biden and President Trump await a winner, investors are back to buying stocks that could benefit from future fiscal stimulus. Later today the Federal Reserve’s latest policy statement will be released after a two-day meeting, and the central bank is expected to continue support for the U.S. economy.
The S&P 500 rallied past the critical 50-day moving average at 3399.63, up to 3486.25, and closed at 3443.44. The rally came on substantially higher volume at 2,882,794,496, and RSI moved past the important 50 level to close at 55.10. So, we believe a new uptrend is now in place, and we also think the index will potentially attempt to test the October high of 3549.85 soon. Possible resistance could not come in at yesterday’s high at 3486.25, and then potentially at 3502.42.
We are currently long-term bullish and short-term bearish.
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.