U.S. stock futures are set to open higher as bond markets calmed, a new stimulus package was passed, and positive vaccine updates. The U.S. 10-year treasury moved from 1.614% down to 1.446%, easing the threat of a higher interest rate environment. President Biden was able to get his $1.9 trillion coronavirus relief package passed early Saturday, and the bill will now move to the Senate. Johns & Johnson (JNJ) began shipping its single-dose vaccine after becoming the third authorized COVID-19 vaccine in the United States.
The S&P 500 traded below the 50-day moving average level of 3808.40, rallied up to resistance at 3870.90 and closed lower on the day at 3811.15. The trading came on massive volume at 3,120,232,704 while RSI moved lower, closing at 43.50, well below the critical 50 level. The last three trading days have been wide-ranging with above-average volume, and it is clear buyers and sellers are battling for control of the S&P 500. The index is in need of a catalyst to move it in either direction before these choppy days end.
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.