U.S. markets are set for a higher open as investors remain upbeat on reopening and vaccine efforts following the holiday weekend. The latest reports indicate that daily coronavirus cases and deaths are flat and declining in most states. Also, more governors are easing lockdown restrictions and allowing more businesses to reopen. Investors will also be watching more economic reports announced this week, and they will be hoping to see an uptick in economic activity.
The S&P 500 traded within the trading range of 2913.86-2954.86 on Friday. The index closed at 2955.45, and the trading came with low volume due to the Memorial Day holiday on Monday. RSI was flat and closed at a value of 57.74, which is typical for a low volume trading day. We still believe a move higher is the next move, which could take out potential resistance at 2954.68 and the 200-day moving average of 2999.36.
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 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.