U.S. stock futures are lower as investors continue to move out of mega-cap stocks with high valuations. The rotation appears to be into stocks that will benefit from the reopening of the U.S. economy. Also, the “pandemic winners” stocks appear to be falling out of favor, dragging markets lower to start the day.
The S&P 500 tried and failed to break out of the current base, and selling that came in moved the index to the current support level. The trading came with lower volume with only 2,171,213,824 shares traded, and RSI was flat, closing at 63.32, which is a positive sign. Early morning trading shows the index test potential support at 4176.22. A break of this level would change our thoughts on a new uptrend starting soon and could potentially bring in more selling today. Possible resistance is now at 4192.66 and then at 4209.39.
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, RJFS
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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