Daily Commentary
Headline News:
Wall Street is set for a higher open on hopes that the coronavirus outbreak is near a peak in the United States. President Trump said the U.S. might be near the top of the “curve,” and that has investors in a bullish mood so far this morning. Also, the President asked Congress for $250 billion in emergency aid for small businesses. Corporate earnings season is coming soon, with companies expected to outline strategies to help with reduced cash reserves.
Markets:
The S&P500 traded through resistance at 2711.33 only to sell off and close at 2659.41 on Tuesday. The trading was on better than average volume, and the RSI index closed little changed at 49.73. We believe the selling was normal profit-taking after a 12% move off the 4/1/2020 close of 24701.50. A close above 2711.33 this week would be constructive for a possible continuation of the recent bullish trend. Potential resistance could also appear at the 28852.59 level.
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.