U.S. stock futures are higher after more positive COVID-19 vaccine news raised hopes of an economic recovery. Pfizer (PFE) announced it would apply for emergency U.S. authorization for its vaccine and also reported that the late-stage trial showed it to be 95% effective. Domestically, U.S. homebuilding increased more than expected in October and was more good news for the U.S. economy. Housing starts rose 4.9% to a seasonally adjusted annual rate of 1.530 million units last month.
The S&P 500 traded sideways on Tuesday and closed at 3609.53 in the middle of the trading range. The volume was lower with 2,394,724,352 shares traded, and RSI moved lower to close at 64.18. We continue to believe the index will need to form a base in the trading range of 3588.11-3645.99 before attempting to move past the all-time closing high. Another day of low volume trading today would only help the case that a new uptrend could potentially start soon.
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.