U.S. stock futures are set to open higher for a second day in a row on more optimism about the reopening of the economy. Investors appear upbeat despite a Bloomberg report that said President Trump might impose sanctions on China over the Hong Kong situation. New home sales increased by 623,000, and the consumer confidence report jumped to 89.6 for the month of April.
The S&P 500 moved above resistance at 2954.86 and traded above the 200-day moving averages 2999.36 on Tuesday. However, the index ended the trading day closing at 2991.77. The move did come with above-average volume, and the RSI index moved higher to close at 60.30 in support of the up move. The days trading was enough for us to move back to a short term bullish stance, and we continue to believe that a potential new uptrend will develop soon.
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.