U.S. stock futures were lower this morning after initial jobless claims unexpectedly rose from the prior week. Initial claims for state unemployment benefits totaled a seasonally adjusted 742,000 for the week ended November 14th, compared to 711,000 in the prior week. The rise in COVID-19 cases started another round of layoffs that could stall the recovery in the U.S. economy. Forty-one states have seen a daily record in coronavirus cases, and 20 have reported a new all-time high in virus-related deaths.
The S&P 500 moved below support at 3588.11 to close at 3567.79 on Wednesday. There was a pick up in volume with 2,691,043,328 shares traded, and the RSI moved lower and closed at 58.95. The index is now in the middle of a four-day base that was formed last week. Potential support could now come in at 3549.85 if the selling continued today. If the trading should stay within the old base, we feel the recent uptrend will still be in place and that a test of the old high is still a possibility.
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.