U.S. stock futures are slightly higher after the release of key economic data and continued hopes of new fiscal stimulus. The initial claims for state unemployment benefits totaled a seasonally adjusted 712,000 for the week ended November 28, compared to 787,00 last week. Meanwhile, talks of a new relief package are still in the works even though both parties are still in negotiations. Investors will also be concerned after the U.S. reached 100,000 people currently hospitalized due to the COVID-19 pandemic.
The S&P 500 traded sideways on Wednesday and formed a new trading range of 3645.99-3678.87. We feel this is potentially the start of a small base before the index possibly attempts to take out a trend line in place since March. The volume was lower with 2,369,257,728 shares traded, and the closed higher at 65.42. Potential support could now come in at the low end of the range, and resistance will potentially be the range’s high end.
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
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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.