The S&P 500 futures are set to open higher on Tuesday on potential signs the coronavirus was starting to slow in the U.S. Investors were encouraged that the economy might begin to recover after the peak in the virus. On Monday, the Dow, Nasdaq, and the S&P 500 all rallied over 7% with heavy volume. This morning all three markets are up over 2% in what looks to be a needed and critical follow-through higher day for markets.
The S&P 500 rallied past resistance of 2637.01 to close at 2663.68 with better than average volume on Monday. The RSI index also moved higher in support of the up move to close at 49.89 just under the important 50 level. We are encouraged by the trading and feel that more buying could potentially come into the index today. Also, today’s trading action needs to also be higher on better than average volume to confirm a potential new trend higher. Resistance could now potentially come in at 2711.33 and 2882.59.
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.