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
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
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.
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