Daily Commentary
Headline News:
The S&P 500 futures were up as much as 106 points to start the day due to a possible stimulus package being passed. Senator Schumer and Treasury Secretary Munuchin reportedly said a relief bill is close to being passed later today. Global markets were up as much as 2% to start the day after traders assessed the Feds announced historic measures to support the U.S. economy.
Markets:
The S&P 500 closed at a new low for the year of 2237.40 after support at 2280.52 did not hold on Monday. Volume was not as heavy as Friday’s but was still above average. The RSI index continued to be divergent and did not set a new low along with the index. So, we are still hopeful a short-term bottom could possibly be formed soon because we feel the selling power is potentially drying up. However, we will remain cautious and keep our short-term bearish stance for now.
We are currently long-term bullish and short-term bearish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management
Specialist℠Portfolio Manager, RJ
Partner, DJWMG
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.