Wall Street is set for a lower open after the price of oil fell below $12 a barrel, and investors’ concerns about another week of Q1 earnings announcements. Energy stocks are leading stocks lower to start the week after oil prices fell to 1999 levels due to oversupply. Also, worries that the U.S. economy will not recover as fast the market has priced in, and reopening the economy could also take more time than expected.
The S&P 500 closed at 2847.56 inside a new trading range of 2825.60-2882.59 on Friday. The index also closed above the 50-day moving average of 2863.09 and is just below potential resistance at 2882.59. We feel the market has moved too far too fast, and it will potentially move back down into the old trading range of 2711.33-2825.60. The move would continue the base building from last week, and it would potentially set up a sustained new uptrend upon a breakout.
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
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.
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