U.S. stock futures were higher as investors hope the late-day rally on Tuesday will carry through to today’s trading. Yesterday, Fed Chairman Powell testified that inflation was “soft” and that the U.S. economy was “a long way from our employment and inflation goals.” Also, the Food and Drug Administration’s staff endorsed Johnson & Johnson’s (JNJ) single-shot vaccine for emergency use. The U.S. will now have three vaccine’s and hopes are higher for a faster rollout for the nation.
The S&P 500 had a wide trading range Tuesday that saw a test and break of support at 3830.41 and a test of resistance at 3892.59. The index closed higher on the day at 3881.37 with above-average volume of 2,933,668,416. RSI did move slightly higher and closed at 54.83 and did not provide confirmation of the up move. So, today’s trading could be critical if any new potential uptrend will form soon. If possible resistance at 3892.59 is breached on high volume, we feel the index’s recent selling could be done.
We are currently long-term bullish and short-term cautious.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.