U.S. stock futures are lower to start the day as investors await Washington’s response to China’s dealing with Hong Kong. China’s parliament moved ahead with national security legislation for the city, and that has created fear over the future freedoms of the financial powerhouse. Later today, Federal Reserve Chairman Powell will speak at a public webcast, and he is expected to announce another round of bond buying to spur economic growth.
The S&P 500 moved past the 200-day moving average at 299.36 and closed at 3029.73. The RSI index stayed flat to close at 62.52 while volume was lower than the previous two days. We feel that a new uptrend has started the could potentially carry on through June unless the coronavirus has a second wave. The large base that began in April should provide has helped create our bullish stance. Potential support could now come in at 299.36, and possible resistance could come in at 3083.23
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.