U.S. stock futures are higher on hopes the proposed new stimulus package will help in an economic recovery along with the new COVID-19 vaccine. The House of Representatives approved a new measure that will send support checks for $2,000 instead of $600 to eligible citizens, and the measure will now go to the Senate later today for a vote. Investors appear encouraged as the trading for 2020 closes out the year later this week.
The S&P 500 closed at 3735.36, a new all-time high closing for the index on Monday. The new high came with low volume of 1,657,55,840, but the RSI did move higher in support of the up move. The lower volume can be attributed to a holiday week where trading is traditionally low. The index is also not solidly above the long term vertical trend line that has been in place since March of 2020. Potential support could not come in at 3723.03, and possible resistance is now at 3740.51.
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.