U.S. stock futures are mixed as the recent volatility declined on expectations of new regulations possibly being introduced soon. Treasury Secretary Janet Yellen called a meeting of top officials to look into recent hedge fund trading that made headline news. There is also the continued hope for fiscal stimulus out of Washington soon to aid the U.S. economy. Meanwhile, hiring by U.S. private companies increased in January despite a rise in COVID-19 cases. The ADP National Employment Report showed private payrolls increased by 174,000 compared to only 78,000 in December.
The S&P 500 moved above resistance at 3776.51 and closed higher at 3826.31. The index is now just below potential resistance at 3826.69, and we feel that level will possibly be breached today. However, the last two up days have come with below-average volume, which could mean there is a lack of conviction in the recent rally. The RSI index did move higher and closed solidly above the middle line at 56.38. The S&P 500 could now start to form another base under the 3859.75 level before another attempt at a new all-time high.
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.