Wall Street is set for a lower open on concerns about the financial fallout of a spreading Coronavirus outbreak in China. Several cities in China have been locked down for contagion fears, and that has many investors heading for the sidelines. Markets will also here earnings reports from 141 S&P 500 companies, including Apple (AAPL), Microsoft (MSFT, and Boeing (BA). Traders will be watching these reports closely, and they could also potentially be market movers.
The S&P sold off below support of 3302.82 on Friday and closed at 3295.47 for the week. Potential new support could come in at 3260.86 if the selling continues this week. The RSI index did move below the 70 level, which is often a possible sell signal for many traders. Volume was only average, which is a good sign that this may be only a small pullback. If the potential support is taken out, the index could be in for a few more days of selling going forward.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
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 purchase or sell the stocks of the companies mentioned.