U.S. stock futures are higher on hopes of a new fiscal stimulus package and continued easy monetary policy from the Federal Reserve. U.S congressional leaders announced progress on a new relief package before the end of the year. The Fed will close out its last FOMC meeting of the year today and is expected to keep lending rates near zero, and Chairman Powell is set to announce that rates will remain lower for the foreseeable future.
The S&P 500 moved above resistance at 3682.73 to close at 3694.62 on Tuesday. The index is now in a strong position to make a run at the all-time high at 3712.39. The volume was average with 2,525,136,96 shares traded, and RSI moved much higher to close at 63.17. Potential resistance could now come in at 3712.39, and possibly support could now come in at the 3682.73 level. We continue to believe a new high will possibly be achieved 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.