U.S. stock markets are set to open lower after the domestic jobless claim report came in at a record-breaking 3.28 million Thursday morning. The report adds to the ongoing fears of how bad the coronavirus will affect the U.S. economy. Traders are now expecting the volatility in markets to continue until there is a decrease in the number of new coronavirus cases. Also, if the $2 trillion stimulus package cannot sustain a market rally for more than two days, what else can Washington provide to help ease investor’s fears.
The S&P 500 rallied again on Wednesday and closed at 2475.56 above resistance at 2478.86. The index did move above resistance at 2562.92 but gave up half the gains late in the day. Volume was above average, and the RSI index moved higher, again, in support of the buying. We were encouraged by the trading and continue to believe a potential short-term bottom was made. However, we do feel the lows will need to be tested again soon before a sustained rally can continue.
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
Windsor Wealth Planners & Strategist
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.