U.S. stock futures are higher to start the week on continued hopes that stimulus plans can prop up the U.S. economy. However, rising coronavirus cases in larger cities continues to create doubt for investors about the economy’s health. Meanwhile, the World Health Organization (WHO) reported a rise in global coronavirus cases on Sunday, adding to the fears of a possible second wave of the infectious virus.
The S&P 500 has formed a trading range of 3083.11-3155.53 after moving higher from the 6/15/2020 low of 2965.66. The RSI index has remained above the 50 level, so we have changed to a short term bullish stance. If the index should move out of the trading range, the 6/8/2020 high of 3233.13 could be tested. Possible support will remain at 3083.11.
We are currently long-term bullish and short-term bullish.
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.