U.S. stock futures are higher, indicating another record high opening to end the week as investors continue to hope for additional stimulus to help prop up the U.S. economy in the coming months. Investors also feel the Biden administration will better at handling the virus vaccine rollout. However, the December Nonfarm payroll report decreased for the first time in eight months. There was a loss of 140,00 in December as the nation dealt with a surge in the COVID-19 cases.
The S&P 500 moved past resistance at 3783.04 and closed at another new all-time high at 3803.79. The index is now also well clear of the long trend line in place since March of 2020. The new high came with good volume of 2,580,634,624, and the RSI index moved higher to close at 68.25. The index now has no overhead resistance and should be free to move higher from these levels. However, we feel that after three wide range up days, some profit-taking could potentially come in today to close out the week. We also feel the long term trend is high, and any selling could possibly be met with new buying.
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.