U.S. stock futures are 14 points lower this morning after Apple (AAPL) issued a revenue warning due to the coronavirus, and the stock is down 2.9% in pre-market trading. Walmart (WMT) announced a miss on profit estimates and is set to open 1% lower. Investors could now become more cautious after a 4.8% gain in the S&P 500 for February after these earnings announcements.
The S&P 500 formed a new trading range of 3352.26-3385.09 during last week’s trading. The RSI index is still not confirming the new highs, and the volume has only been below average. However, bullish sentiment is still winning out in the battle between the bulls and bears, and we feel another new high is possible in the offering this week.
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
Dominguez & Jones Wealth Management Group
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.
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