U.S. stock futures were up over 1% to start the day on news of easing in the U.S.-China trade war tensions. President Trump had threatened new tariffs, but Beijing said both sides have agreed to improve the atmosphere with the Phase 1trade deal. Domestically, the U.S. economy lost 20.5 million jobs in April, the most significant drop since the Great Depression, and the unemployment rate surged to 14.75%. The stunning report has economists predict a slow recovery from the recession caused by the coronavirus pandemic.
The S&P500 traded flat on Thursday but moved above resistance at 2879.22 to close at 2881.19. The move came on average volume, once again, and RSI was little changed, closing at 55.35. So, we believe the index is potential set up to test resistance at 2985.93 in next week, and we want to see a pick in volume to show buyers are back in charge. Potential resistance remains at 2825.60 if sellers should get control.
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.