U.S stock futures are lower to start the week as more cities enacted new lockdowns after a recent surge in coronavirus cases. The new orders come after the U.S. recorded a new one-day record of 227,995 new COVID-19 cases and more than 100,000 hospitalizations for five straight days. Meanwhile, a proposed new $900 billion stimulus bill is now getting backing from President Trump and Senate Majority Leader Mitch McConnell. The stimulus would include $300 in extra federal weekly unemployment benefits, but not another round of $1,200 check to U.S. citizens.
The S&P 500 moved above resistance at 3682.73 and closed at an all-time high of 3699.12 on Friday. The new high came with only average volume of 2,582,951,168, and RSI moved higher up to 67.96. Another significant action was the breach of the trend line that has been in place since March 2020. If the index can stay above that trend line, a new uptrend is possibly starting during the traditional strong time of the year for the markets. New potential support could now come in at 3687.73.
We are currently long-term bullish and short-term bullish.
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
John N. Lilly III CPFA
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.