Daily Commentary
Headline News:
U.S. stock markets are flat to start the week as investors calculate the economic impact of the coronavirus outbreak. The death toll has now surpassed that of the SARS outbreak in 2002-2003, and the World Health Organization said the number of current cases could be just ” the tip of the iceberg.” Domestically, earnings season continues this week, and Federal Reserve Chairman Jerome Powell will address Congress on Tuesday.
Markets:
The S&P 500 moved lower on Friday and closed at 3327.71, which was below the current support level at 3333.18. Volume was well below average, and the RSI index turned lower in support of the down day. The next potential support level is now at 3306.92, and we feel the index could test that level this week. If the support should hold, the index would be in good shape to possibly test the old highs again.
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.
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.