U.S. futures are lower despite the hopes of a rapid release of a COVID-19 vaccine throughout the nation. Medical officials said vaccinations could begin as early as this weekend if the FDA granted permission. Meanwhile, U.S. lawmakers approved a stopgap funding bill that allows for continued negotiations on possible new fiscal stimulus to prop up the U.S. economy. The stimulus is needed after the number of Americans filing for first-time unemployment benefits increased more than expected this week. Initial claims for unemployment benefits totaled a seasonally adjusted 853,000 for the week ended December 5th.
The S&P 500 touched a new all-time high at 3712.9 only to sell off below support at 3682.73 and closed at 3672.82. There was a substantial pick up in volume with 2,742,626,496 traded. The RSI index also moved lower in support of the selling closing at 62. The selling has the appearance of normal profit-taking after a six-day move higher. Potential support can now come in at 3645.99, and we feel this level will be tested and hold. If so, the index will be set up to, possibly, achieve a new high by the end of the year.
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.