U.S. stock futures are higher after better than expected manufacturing orders from China and hopes for a vaccine rollout by the end of the year. China’s factory sector grew at its fastest pace in ten years and has shown the economy is not currently under pressure due to the pandemic. Pfizer (PFE) was up 3% in pre-market trading after asking for emergency approval for their vaccine from a European regulator. Federal Reserve Chairman Powell said the vaccine news is positive, but the impact on the economy until the product is massed produced for the public.
The S&P 500traded down to support at 3588.11 and then rallied to close lower on the day at 3621.63. There was a huge increase in volume with3,639,680,512 shares traded, and the RSI index moved lower to close at 61.19. We feel the selling was potentially month-end repositioning of portfolios and the index resolving an oversold condition. The S&P 500 is still in a solid base, which could lead to a new all-time high soon. Potential support could come in at 3588.11 and possible resistance at 3645.99.
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.
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