U.S. stock futures are set to surge at the open of trading a day after the most significant one day dive in about three months. Fears of a resurgence of coronavirus cases and a potential slow down in the U.S. economy were blamed for the selling. On the data front, investors will receive the Export and Import prices for May and the preliminary University of Michigan Consumer Sentiment for June.
The S&P closed at 3002.10 after a dramatic selloff and was below the critical support of 3013.01 at the 200-day moving average. The selling came with above-average volume, and the RSI index moved solidly below the 50 level to close at 48.58. Potential support could now come in at 2980.29 and then possibly at 2913.23. The new uptrend that was in place has now had halted due to the massive selling. We feel the index will continue to see volatile trading before the uptrend will be back in place.
We are currently long-term bullish and short-term bearish.
John N. Lilly III CPFA
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.