U.S. stock futures were higher to start the day but pared those gains after the release of the Nonfarm payrolls report. However, continued hope of new financial stimulus helped the futures remain positive. The Labor Department reported an increase of 245,000 jobs in November after rising by 610,000 in October. That was the smallest gain since May and had investors concerned about the health of the U.S economy. Meanwhile, a $908 billion coronavirus aid plan seems a real possibility after both sides expressed support for the bill.
Again, the S&P 500 is forming a small base at the top of the current trading range. Potential support remains 3645.99, and possible resistance is now 3682.73. The index is also just under the long term trend line that has acted as resistance four times this year. The RSI index has not crossed over the overbought level, which shows there is still room to move potentially higher. We feel the base forming will allow the index to breakthrough current resistance and potentially start a new uptrend soon.
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.