U.S. stock futures are lower on fears over rising COVID-19 cases worldwide, potentially slowing down economic recovery. The prospect of no new fiscal stimulus also has investors worried as we end the week. California and Ohio imposed nightly curfews joining 20 states that have adopted new measures to fight the virus spread. Pfizer (PFE) was higher by 1.8% in pre-market trading after announcing it has applied for emergency use of its COVID-19 vaccine.
The S&P 500 briefly traded below support at 3549.85 and rallied late in the day to close higher at 3581.87. So, we now know there are potential buyers at the current support level. The index also traded just under resistance at 3588.11, forming a new trading range. The volume was lower with 2,277,220,096 shares traded, and the RSI index was slightly higher, closing at 60.13. We belelive the current base will continue to form and lead to a potential test of the all-time closing high.
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.