U.S. stock futures are higher pre-market as investors await a speech from U.S. Treasury Secretary nominee Janet Yellen. The future Treasury Secretary is expected to make a case for a large stimulus relief package later today. Also, there will also be more earning announcements, including more from large U.S. banks that could provide insights into the health of the U.S. economy. Earlier this morning, global stocks got a boost when China reported their economy actually grew in 2020 and picked up the growth pace late in the year.
The S&P 500 traded below support at 3776.51 on Friday and closed lower ahead of a three day weekend at 3768.25. The trading came on higher volume with 2,733,177,856 shares traded, and RSI dove lower to close at 57.06. We feel traders may have gone to cash to protect themselves from any bad news over the weekend, and we also believe those sellers will become potential buyers today. New possible resistance could now come in at 3788.73, and potential support will remain at 3723.03.
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.
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