U.S. stock futures were down 1.75% as recovery hopes continue to contend with more localized outbreaks of the coronavirus. In the U.S., 22 states have now reported a rise in the number of coronavirus cases, and Beijing reported a new spike in cases at a wholesale food market. Investors are also dealing with fears of a slowing U.S. economy and even a possible recession on the horizon.
The S&P 500 moved traded down to support at 2980.29 only to rally late in the day to close at 3041.31. The RSI index did turn back up and moved above the 50 level to close at 51.72. However, volume was not enough to convince us that the recent selling is over. So, we will remain short term bearish until there is a rally with above-average volume above potential resistance at 3130.94. Possible support could now come in at 3013.01, 2980.29, and then at 2913.23.
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.