U.S. stock futures are higher after a continuation of upbeat earnings reports and a decline in weekly jobless claims. U.S. companies are on pace to post earings growth for the four-quarter according to data provider Refinitiv. The growth comes despite projections of a 10% drop due to the COVID-19 pandemic. The Labor Department’s Initial claims for unemployment benefits totaled 779,00 for the week ended Jan 30. That was lower than the previous week’s number that came in at 812,000. The decrease suggests that the labor market is starting to normalize as the U.S. economy starts to open back up.
The S&P traded sideways on Wednesday after briefly breaking support at 3826.69 to close lower at 3830.17. The volume was still well below average, with 2.259.888,384 shares traded. We feel the trading was constructive and the possible start of a base after the recent rally. Possible support will remain at 3826.69, and potential resistance remains at 3859.75. Absent any significant market-moving news; we feel the index will move sideways the next few days.
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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