U.S. stock futures are higher but pared more considerable gains after the ADP’s report showed the private sector lost 20 million jobs in April. The stunning report suggested that national lockdowns, due to the coronavirus, may have a lasting negative effect on the U.S. economy. Investors. The ADP report is seen as a precursor to the Unemployment report due out this Friday. Investors will be bracing for another potential record number of job losses.
The S&P 500 traded above resistance of 2879.22 at 2898.00 only to selloff and close at 2868.44. The trading was an indecisive day on average volume, and the RSI index was little changed. So, we feel the market took a break and is now stuck in a trading range of 2825.60-2879.22. However, we do believe the more prolonged the sideways trading, the better the chance of a new potential uptrend starting to take hold.
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
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
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.