Daily Commentary
Headline News:
Wall Street is set for a lower open as investors await first-quarter earnings season to begin, and then assess the damage the coronavirus may have had on corporate earnings. Analysts are expecting a 9% drop in earnings for S&P 500 firms after a forecast of a 6.3% increase, according to IBES data from Refinitiv. Over the weekend, major oil producers announced an output cut, the biggest-ever, but prices were little changed as the virus has lowered demand.
Markets:
The S&P 500 rallied up to resistance at 2825.60 only to close at 2789.82 on Thursday. The move did come with better than average volume, and the RSI index continued to move higher, closing at 54.62. Potential resistance will continue to be at 2825.60 and then possibly at 2882.59. Possible support could come in at 2711.33. We feel another short basing for the index is needed before an attempt to take out any resistance levels. There are still plenty of sellers lurking at current levels, and that could make a continued up move difficult.
We are currently long-term bullish and short-term bullish.
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.