Daily Commentary
Headline News:
S&P 500 futures are set to open lower on fears the coronavirus may continue to spread, and the U.S. may become the next global epicenter, according to the World Health Organization. Although the three-day rally has been impressive, there are still fears of how bad the epidemic will affect the economy. The United States now has the most coronavirus cases, 85,000, and has reported 1,259 deaths. Investors will be watching the debate closely on the proposed stimulus package in the U.S. House of Representatives later in the day
Markets:
The S&P 500, impressively, move above another resistance level at 2562.92 and closed at 2630.07. The move came with lower volume than the first two days, so the buyers may be running out of ammo for now. A rising RSI index is still supportive of the rally and closed at 46.22. Potential support is now at 2562.92 and then 2478.86 if the sellers should come back into the market.
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
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.