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.
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
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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