U.S. stock futures are higher as Joe Biden is set to become the 46th President of the United States at noon today. The new President is set to sign 15 executive orders immediately on issues ranging from the pandemic, climate change, and immigration. Also, Treasury Secretary nominee Janet Yellen encouraged lawmakers to “act big” to help prop up the U.S. economy and vowed to worry about the debt after the pandemic is over.
The S&P 500 moved above resistance at 3788.73 and closed higher on the day at 3798.91. More importantly, the index gained back all the losses from the heavy selling last Friday. The volume was lower with only 2,480,939,776 shares traded, but the RSI moved much higher in support of the move to close at 61.38. The index is now back in the 3788.73-3826.69 trading range. If there is another positive trading day today, the S&P 500 will be back in position to, possibly, attempt a move to a new all-time high soon.
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.