U.S. stock futures are lower despite the passage of President Biden’s $1.9 trillion Covid relief bill. The bill provides another round of stimulus checks and an extension to the unemployment benefits. The 10-year Treasury yield moved back up to 1.6%, and investors fear that could potentially cause more selling in high valuation stocks.
The S&P 500 had another wide-ranging with massive volume to close out the week. The index tested the 3/4/21 low 3726.34 and then rallied back above the resistance of 3830.41 to close higher at 3841.94. The volume came in at 3,302,966,784, and RSI moved higher in support to close at 49.16. So, potential support is now back at 3830.410 and the 50-day moving average at 3821.99. We expect some early selling to come in early today, which is normal, but the current support levels need to hold to keep the sellers on the sidelines.
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.
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