Daily Commentary
Headline News:
U.S. stock futures are lower this morning on fears the impact of the coronavirus will have on the global economy, and the World Health Organization (WHO) declared the outbreak a global emergency. Domestically, Amazon (AMZN) reported strong holiday sales and is up 10.5% pre-market. Caterpillar (CAT) and Visa (V) are both down sharply after missing analyst expectations. According to Refinitiv data, S&P 500 companies that have reported through Thursday had a 0.7% rise in profits.
Markets:
The S&P 500 traded down to 3242.80 only to rally late in the day to close at 3293.47. The trading came on better than average volume, and RSI moved higher to close at the 55.88 level. The index is now just below possible resistance at 3293.47, and potential support becomes 3223.43. So, a move above the resistance level could bring in more buyers to finish the week strong. We feel the index needs more time before trying to take out the resistance, and we will take a wait and see approach.
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
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.
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