U.S. stock futures are lower after closing at another all-time high on Monday. A lack of negative catalysts and strong corporate earnings has been cited as the reason for the recent six-day rally. Today, House Democrats will reportedly move forward with a stimulus bill that includes $1,400 checks with $75,000/year eligibility. The stimulus will be the first step toward the proposed $1.9 trillion bill President Biden has proposed to prop up the U.S. economy.
The S&P 500 closed at 3915.59 on Monday, which was yet another all-time high. Also, once again, volume was low with 2,148,268,800 shares traded, which was below average. We continue to believe the index is extended and needs some sideways trading to consolidate recent gains. The first potential support level could come in at 3892.59 and then possibly at 3874.93. If selling should come in, the down move could be swift and present a possible 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.