U.S. futures are set for a lower open a day after yesterday’s broad-based rally. Later today, Fed Chairman Powell and Treasury Secretary Mnuchin will testify before the Senate on the government’s response to the coronavirus. Earlier this morning, Walmart (WMT) posted strong earnings, and the stock is up 4% in pre-market trading. Home Depot (HD) was lower to start the day after reporting the COVID-19 related expenses are weighing on profits.
The S&P 500 had a strong rally that saw the index moved above resistance at 2879.22 and closed at 2953.91 on Monday. The close was just below potential resistance at2954.86, which has proven difficult to move past recently. The rally came on above-average volume and a surge in the RSI index up to 58.92. Potential resistance could now come in at the 20-day moving average at 2998.44. We need to see a follow-through soon on higher than average volume before we move back to short term bullish.
We are currently long-term bullish and short-term bearish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
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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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