U.S. stock futures were mixed to start the day as Beijing moved to impose new security laws on Hong Kong, and investors fear the move could strain trade relations with the United States. China also dropped its growth forecast for the first time since the COVID-19 pandemic. China’s Shanghai index fell 1.9%, and Hong Kong’s Hang Sang index dropped 5.6% in early trading. The U.S. has a market holiday on Monday for Memorial Day, so trading could be volatile to end the week.
The S&P 500 has formed a small trading range of 2913.86-2954.86 over the last four days, and the index looks set to possible move above the 200-day moving average. Volume has been below average, which in normal while building a base for a move higher. We feel the next move could be higher, but we will wait for a breakout with above-average volume before moving 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
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