U.S stock futures are set to open lower due to concerns of a new fiscal stimulus package delayed and a continued increase in COVID-19 cases. Investors fear politics are at play for a new stimulus deal and not a concern for a weak U.S. economy. On Thursday, Speaker Pelosi raised the possibility of negotiations continuing through Christmas. Also, U.S. producer prices were up a meager 0.1% in November after an increase of 0.3% in October.
The S&P 500 traded down to support at 3645.99 only to rally and close higher at 3668.10. So, we know that there is now valid support where buyers should continue to appear. The volume was lower with only 2,408,572,416 shares traded, and RSI closed at 61.12. If the current support should be breached, the next level of support could possibly come in at 3617.76.
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.