Daily Commentary
Headline News:
Wall Street is set to open lower this morning over continued fears of the economic threat from the coronavirus. A $ 2trillion stimulus deal being passed soon helped the S&P 500 rally 9.4% on Tuesday, but traders worry that the agreement was already priced into the markets. Fears of continued spread of the virus and the potential for a recession still ways heavy on investor’s minds this morning.
Markets:
The S&P 500 rallied back into the old trading range of 2478.86-2280.52 on better than average volume. The RSI index also turned higher in support of the days buying to close at 39.24. The trading action was encouraging and added to our belief that a potential short-term bottom has been achieved. Possible resistance is now at 2478.86, and we also feel good that level can be taken out soon. The index will now need a follow-through day of buying with heavy buying to confirm the potential bottom.
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.