U.S. stock futures are lower a day after the S&P 500 and Nasdaq closed at new all-time highs on Tuesday. Investors will now be waiting for the monthly private job creation to gauge the health of the U.S. economy. Pfizer (PFE) became the first domestic company in Britain to gain approval for its COVID-19 shot. Also, U.S. officials unveiled a plan to distribute vaccines starting later this month.
The S&P 500 closed at a new all-time at 3678.87 after moving decisively past resistance at 3645.99. Volume was lower with 2,612,361,408 shares traded, and RSI closed higher in support of the up move at 64.86. The lack of volume shows the buying was selective and not broad-based. Sellers came in at the 3678.87 level to push the market lower, so we now know where potential resistance and selling could come in. Also, a long-term chart has a trend line that has been in place since March that could also act as resistance. Possibly support will now become the old resistance level 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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
The national employment report from Automated Data Processing Inc. is computed from ADP records that represent approximately 400,000 U.S. business clients and approximately 23 million U.S. employees working in all private industrial sectors. ADP contracted with Moody’s Analytics to compute a monthly report that would ultimately help to predict monthly nonfarm payrolls from the Bureau of Labor Statistic’s employment situation. The ADP report only covers private (excluding government) payrolls.