U.S. stock futures are lower to start the week as investors turned cautious about a second wave of coronavirus infections. Germany and South Korea reported an increase in COVID-19 cases after easing lockdown restrictions. Analysts are now concerned continued weak economic data could lead to a longer global recession, and negative U.S. interest rates are now being priced into financial markets. The Federal Reserve will be hosting a webcast with Chairman Powell on Wednesday to give and economic outlook.
The S&P 500 moved away from support at 2879.22 and finished the week higher at 2929.80. The move came with below-average volume, a small problem, and RSI did have a sharp move higher to close at 58.29. The index will need a follow-through day with above-average volume for the move to be considered a breakout. Potential resistance remains at 2985.93, with the 200-day moving average at 3001.97 as the possible next resistance.
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.