U.S. stock futures were lower as investors continue to review earnings reports from S&P 500 companies. Also, later today, the jobless claims report is due out, and it is expected to give clues on the health of the economic recovery. The data is likely to show that the number of Americans filing new unemployment claims rose last week. Increased vaccine rollouts have in the U.S. have improved the recovery rate, but another surge in COVID-19 cases could be a problem over the next three months.
The S&P 500 rallied back above resistance at 4151.69 to close much higher at 4173.42. However, volume was once again low, with only 2,097,715,456 shares traded. The RSI index did move higher in support of the rally closing at 67.80. So, the question becomes, was this an oversold rally or the start of another uptrend? We feel there will be more downside to come and that the 4095.51 level will be tested. We do not think a downtrend is starting but only selling to relieve the overbought condition of the S&P 500.
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, 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.
This is not a recommendation to buy or sell any company’s stock mentioned above.