U.S. stock futures were set to open flat to start the week after a weekend where coronavirus cases continued to rise. Data out Johns Hopkins University showed more than 713,000 instances globally, and the U.S.A had the most cases with over 136,000. A 5% drop in crude prices is also weighing on trading and triggering selling in areas of the markets. The S&P 500 rose 10.3% last week on prospects of a massive stimulus package being passed in Washington. This week’s economic data reports could be important to investors and potentially market movers.
The S&P 500 tried to rally on Friday but sold off late below support at 2562.92 and closed at 2541.47. Volume was below average, and the RSI index moved lower to close at 43.58. New potential support could now potentially come in at 2478.86. The selling looked like profit-taking going into the weekend after a strong rally during the week. So, we would like to see the index hold above support and move sideways for a few days. If so, the index could possibly be set up to try and move higher toward potential resistance at 2569.69.
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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