U.S. stock futures are higher as investors will now focus on earnings from S&P 500 companies and new details about an economic stimulus package out of Washington. There is still some concern the impeachment process could delay President-elect Biden’s agenda for a new relief bill. Fourth-quarter earnings season will start this week with Citigroup (Cs and JPMorgan (JPM) announcing on Friday. The earnings reports will be watched closely to gauge the health of the U.S. economy and the health of U.S. corporations.
The S&P 500 traded down near current support at 3783.04 and bounced off that level to close lower at 3799.61. The trading came on average volume at 2,328,041,216, and RSI moved out of the overbought zone to close at 64.95. If the S&P 500 can move sideways for a few days, we feel the uptrend can potentially continue. A break of current support at 3783.04 could bring in more selling into the market. However, we are still long-term bullish and feel any potential sellling could, possibly, be used as a buying opportunity.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.