U.S. stock futures are down on fears over a new strain of the coronavirus despite a new $900 billion stimulus deal. The new strain is said to be 70% more transmissible than the original, forcing the United Kingdom to shut their borders over the weekend. The news has investors fearing more lockdowns and more disruptions to economic recoveries. The new stimulus agreement is expected to be voted on and passed later today.
The S&P 500 traded down to support at 3682.73 and rallied to close at 3709.41 on Friday. Pre-market trading has the index potentially opening at 3637.20, which would be below possible support levels at 3682.73 and 3663.40. The next level of potential support to watch today could come in at 3594.35 and below that is the 50-day moving average at 3547.94. The selling could be intense today, and markets could be volatile and wide-ranging all day.
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.