U.S. equities markets are set to open higher after President Trump expressed hope that the coronavirus crisis is “leveling-off.” New York reported on Sunday that for the first time in a week, virus-related deaths had fallen from the day before. Also, the number of deaths in France and Italy slowed over the weekend. Investors appear to be encouraged by the news and are set to be potential buyers when the market opens to start the week.
The S&P 500 moved below support at 2500.07 and closed at 2488.65 on Friday. The selling was on below-average volume, and the RSI index did not change its closing level of 42.92. The last three trading days have traded help create another base that is constructive for equity markets. If we see more base building or even a move above the base, the index could possibly move higher this week. Potential resistance could come in at 2637.01, while possible support will remain at 2380.94.
We are currently long-term bullish and short-term bearish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
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.